Fielding Graduate University

Procedure:

1. Reimbursement:

a. Allowance: For employees who need to be available by on a regular and ongoing basis, Fielding Graduate University will provide a taxable monthly allowance for cell phones for authorized individuals. The employee is responsible for obtaining and maintaining personal cell phone service. Phones may be used for personal calls and monthly reporting is not required.

b. Direct reimbursement: For employees not receiving an allowance, who occasionally incur expenses for phone calls made on their personal cell phone, Fielding will reimburse the employee for the actual expense incurred. 

c. Cost of equipment: the cost of cell phone equipment is not reimbursable.

d. International calls: Additional reimbursement for business calls made while on international travel using a cell phone is not authorized because of the high cost. Employees may be reimbursed for the cost of the more economical telephone access cards per the employee business expense reimbursement policy.  

2. Authorization: 

a. A supervisor may request a monthly cell phone allowance for an employee if the following criteria are met:

i.The employee’s primary duties as outlined in the approved  job description require that the employee regularly spend a considerable amount of time outside of the office during normal working hours and that cell phone access is necessary during this time.

ii.The employee’s primary duties as outlined in the approved job description require that the employee must be regularly accessible outside of scheduled or normal working hours.

 iii. All requests will be subject to review and approval by Human Resources.

b. Monthly cell phone allowances may be between $42 and $155 per month dependent upon the employee’s job description. The Human Resources office will determine the allowance percentage in coordination with the Finance office. 

c. To obtain approval, the supervisor should submit a written request for authorization to the Chief Financial Officer (CFO) for approval. The Finance Office will route it to Human Resources for review. Allowances will be reviewed on an annual basis at the start of the fiscal year. 

Approved By:               President and the President’s Leadership Team

Date Approved:           July 5, 2005

Staff Responsibility:    Chief Financial Officer

I.   Policy:

It is the policy of the Fielding Graduate University to comply with generally accepted accounting principles for fund accounting. This fixed asset capitalization and depreciation policy is intended to comply with Financial Accounting Standard Board Statement 93.

II.  Procedure:

A.  A fixed asset is defined as a single item with a cost exceeding $1,000 and a life of greater than one (1) year. Purchased computer software or internally developed software will be considered on a case-by-case basis for capitalization when the cost exceeds $25,000.

B.   A Capital Expenditure Budget is compiled each year as part of the budgeting process. President’s Leadership Team members submit requests and justifications to the Chief Financial Officer. These requests are reviewed by the President’s Leadership Team (PLT) during their budget review. The President recommends approval of the Budget to the Budget, Finance & Audit (BFA) Committee and to the Board of Trustees.

C.   On a monthly basis, a Capital Expenditure Report is prepared for review by the PLT and BFA that compares actual expenditures with the annual budget.

D.   Purchase of budgeted fixed assets requires advance approval of the budget manager, the respective member of the President’s Leadership Team (PLT) and the following depending upon the amount of the purchase:

$250,000 or over          President and Treasurer

$25,001 to $249,999    President

Up to $25,000              Chief Financial Officer

Purchase of unbudgeted fixed assets that will result in the total annual approved capital expenditure budget being
exceeded requires advance written approval of the budget manager, the respective member of the PLT and the following depending upon the amount of the purchase:

$100,000 or over         BFA and Board of Trustees

$10,001 to $99,999     President

Up to $10,000             Chief Financial Officer

E.   Fixed assets are recorded at cost and depreciated on a straight line basis using the respective standard lives listed below.

Account                       Classification                                      Life of Asset

 

Plant, Property & Equipment

20-000-15000-00        Land                                                  Not depreciated

20-000-15100-00        Buildings                                            30 yrs

20-000-15200-00        Computer System                              5 yrs

20-000-15210-00        Computer Hardware                          3-5 yrs

20-000-15600-00        Land & Building Improvements          10 yrs or life of bldg

20-000-15700-00        Office Furniture & Equipment             5-10 yrs

20-000-15800-00        Telephone                                          5 yrs

20-000-15900-00        Vehicles                                             5 yrs

 

Other Assets

20-000-15220-00        Computer Software                            case-by-case

F.   Construction in progress is defined as assets that are being built or completed. Costs are accumulated in a "construction in progress" account and reclassified to the appropriate fixed asset account upon completion.

 

G.   Capital leases will be recorded as a fixed asset and depreciated over the life of the asset.

 

H.   Direct labor costs for self-constructed assets are recorded as part of the cost of the asset when labor costs exceed $25,000. 

 

I.    Each asset is assigned to a Department or service center. The Department Budget manager is responsible for:

Notifying the Finance Department when an item being completed using a construction in progress account is in service.

• security and maintenance of assigned assets
• reporting changes in life of asset to the Finance Department
• reporting changes in condition that would affect the value or life of the asset to the Finance Department
• reporting when an asset is taken out of service
• The Finance Office will assist Departments in working with field faculty who have custody of fixed assets.

 J.    Fixed assets are tracked by the Finance Department using Datatel’s Fixed Asset System. On an annual basis, a fixed assets inventory review is conducted with the individual budget managers.

 

K.    Depreciation begins the month the asset is placed in service. For single purchases this is assumed to be the month after the purchase is made.

 

L.    Sale and/or disposal of a fixed asset require the approval of the Chief Financial Officer. Sale and/or disposal of land or fixed assets with a value of more than $250,000 require the approval of the President and the Board of Trustees. Gain or loss on the disposal of an asset is recorded to the property fund.

Approved by:             President

Date Approved:          January 4, 2005

Staff Responsibility:   Provost and CFO

Procedures:

1.      Grants: For the purposes of this policy, a grant is defined as charitable contribution made to Fielding Graduate University for the purpose of Fielding Graduate University either providing services to others conducting research in support of its scholarly mission or for other expenditures of the institution in fulfillment of its mission. A separate policy covers contracts for services provided by Fielding to another organization that are paid for by that same organization.

2.      Primary Responsibilities:

a.       Dean: The Dean (or Dean’s designee) is responsible for being the initial contact for faculty within their school who develop a grant proposal. The Deans will:

i.        review proposal idea regarding alignment with mission and vision of Fielding and the School and for implications for resources, workload and other impact on School resources.

ii.      receive copies of communication between the grant proposal developer and Offices at Fielding relating to the development of the grant such as the Development Office, the Office of Research, and the Finance Office.

iii.    Sign off on final proposal prior to submission.

iv.    Approve the receipt of the grant and the conditions associated with it including being involved with any related negotiations.

v.      Receive copies of reports, financial statements, and other deliverables for information purposes regarding funding and project progress and results.

b.      Associate Provost for Research: The Associate Provost for Research is the primary contact for Deans and Faculty who want to develop a proposal or request for funding. The Associate Provost for Research is responsible for:

i.        coordinating all requests or proposals for funding support to government or non-government funders

ii.      working with the Director of Development to ensure that all requests submitted to foundations or individuals are consistent with institutional development efforts.

 

iii.     coordinating budget review with the Finance Office and providing final review of research proposals.

ii.      obtaining approvals from the Provost or Chief Financial Officer.

c.      Director of Development: The Director of Development is responsible for:

i.         management and development of relationships with prospective donors, foundations, and individual donors

ii.      final review of non-research proposals

iii.    acknowledgement of all contributions,

iv.    donor recognition, and

v.      communication with donors.

d.       Chief Financial Officer: The CFO is responsible for:

i.         reviewing all proposal budgets and advising program managers on financial issues,

ii.      establishing financial systems to enable accurate tracking of grant awards and expenditures

iii.    financial reporting.

a.       All faculty and staff members are encouraged to develop proposals or projects that could be funded by grants with the approval of their Dean or supervisor. When faculty or staff has a potential concept or funding contact, they should contact the Associate Provost for Research Grants who will guide them through the following steps:

i.     Develop a proposal summary

 

ii.    Develop a budget

 

iii.    Review and approval

iv.    Final submittal

b.      Considerations in developing a proposal:

i.        Begin with a 1-2 page summary as well as any potential funding sources you have identified

 

ii.      The summary should be concise and include:

1.      Problem to be addressed

2.      Approach or methods to be used

3.      Anticipated outcome

4.      Relation of project to Fielding’s mission, values and goals

c.       Considerations in developing a budget:

i.        Tuition or fees:  Clearly state the number of students and fees in the budget. Set a minimum course size if the project is dependent upon tuition in order to meet the budget.

 

ii.      Personnel (i.e. employees):

1.      Review new positions with Human Resources since they will manage the recruitment of all new employees.

2.      Include benefits costs (Finance can assist with salary and benefit calculations.)

3.      If your proposal includes costs for staff or faculty in other departments, be sure to coordinate with the employee supervisor.

4.      Costs for employees are allocated to the grant to include applicable benefits.

5.      Exempt faculty and staff time will be charged at their salary or hourly wage rate plus benefits. Labor allocation rates are set by the Finance Office on an annual basis. 

6.      Exempt employees may be authorized to work up to 20% of total work hours on grant projects.

7.      Non-exempt employees may be authorized to work additional hours with the advance approval of their supervisor and will be paid according to applicable wage and hour laws.

8.      All services provided by employees will be paid through payroll in compliance with state and federal regulations.

iii.      Consultants or Independent Contractors:

1.      Contract addendums may be needed for adjunct faculty or consultants currently under contract to Fielding (Human Resources may assist in this area).

iv.    Indirect Costs:

1.      Fielding Graduate University’s standard indirect cost rate is 26% and includes costs included in “Institutional Support” (Institutional Advancement, President, Information Technology, Human Resources and Administration, Operations and Maintenance) and depreciation and interest.

2.      Many foundations have specific policies about allowable indirect costs and this standard rate may be waived with the approval of the Provost (or designee).

3.      If indirect costs are reduced below 26%, the project budget should include all identifiable costs as direct costs.

v.    Matching Costs:

1.      If matching costs are to be included in the proposal, the budget manager who will be approving the matching costs must approve the match.

4.      Submitting the Proposal:

a.       The final proposal (and associated application procedures) must be approved by:         

i.        Dean or staff supervisor

ii.      Associate Provost for Research (for research proposals)

iii.    Director of Development  (for non-research proposals)

iv.    CFO

v.      VP of Human Resources (when personnel costs are involved, i.e. above base salary and wage payments, new positions, etc.)

b.      Proposals with a budget of over $250,000 require the approval of the Provost and President.

c.       The Associate Provost for Research and Director of Development will coordinate any related correspondence or communication with the foundation, foundation board members, donor, or related parties.

5.      Award notification and files:

a.       Award notification: The grant request should identify the Associate Provost for Research or the Director of Development as the person to be notified of the award.

b.      Official grant files: Official grant files will be maintained by the Finance Office and will contain original documents and correspondence. The Finance Office will promptly provide copies to the Associate Provost for Research and Director of Development.

c.       Development files: The Development Office maintains files of grants and contributions by donor. 

d.      Acknowledgement: The Director of Development and the Associate Provost for Research will coordinate all acknowledgement correspondence.

e.       Grant progress reporting: The Director of Development and the Associate Provost for Research will coordinate all progress reporting.

6.      Financial management:

a.       Budget manager: One budget manager will be responsible for budget management and will be authorized to approve expenditures in accordance with Fielding policies and within the grant guidelines. The budget manager will coordinate financial tracking with the Grants and Contracts Coordinator in the Office of Research. In the event of overspending by a budget manager, that budget manager’s department will be responsible for the expenditures from the department’s operating budget.

b.      General: The Finance Office will manage cash receipts and expenditures in accordance with Fielding policies. Each grant will be assigned separate account codes in order to easily track expenditures. Monthly reports will be provided to the budget manager, their respective PLT member, the Associate Provost for Research, and the Director of Development.

c.       Financial reporting: The Finance Office will prepare or review all financial reports being submitted to the foundation or donor.

d.      Post award closeout: The Finance Office, the Associate Provost for Research, and the Director of Development will coordinate all closeout activities and reports required upon completion of the grant.

7.      Financial Incentives:

a.       If a grant project results in unbudgeted savings during a fiscal year (i.e. in the form of a salary allocation or salary relief or other cost savings), a budget manager may request that this amount be allocated in the following year’s budget.

FUND MISSION

The mission of the endowment fund is to support the vision, mission, and values of Fielding Graduate University.

SCOPE OF THIS INVESTMENT POLICY

This statement of investment policy reflects the investment policy, objectives, and constraints of the entire Fielding Graduate University Endowment Fund, including quasi-endowment funds and endowment funds restricted as to the use of funds.

PURPOSE OF THIS INVESTMENT POLICY STATEMENT

This statement of investment policy is set forth by the Budget, Finance, and Audit Committee (hereafter referred to as the BFA Committee) of Fielding Graduate University in order to:

1. Define and assign the responsibilities of all involved parties.
2. Establish a clear understanding for all involved parties of the investment goals and objectives of Fund assets.
3. Offer guidance and limitations to all Investment Managers regarding the investment of Fund assets.
4. Establish a basis for evaluating investment results.
5. Manage Fund assets according to prudent standards as established in common trust law.
6. Establish the relevant investment horizon for which the Fund assets will be managed.

In general, the purpose of this statement is to outline a philosophy and attitude which will guide the investment management of the assets toward the desired results. It is intended to be sufficiently specific to be meaningful, yet flexible enough to be practical.

DELEGATION OF AUTHORITY

The BFA Committee of Fielding Graduate University is a fiduciary, and is responsible for directing and monitoring the investment management of Fund assets. As such, the BFA Committee is authorized to delegate certain responsibilities to professional experts in various fields. These include, but are not limited to:

1. Investment Management Consultant. The consultant may assist the BFA Committee in: establishing investment policy, objectives, and guidelines; selecting investment managers; reviewing such managers over time; measuring and evaluating investment performance; and other tasks as deemed appropriate.
2. Investment Manager. The investment manager has discretion to purchase, sell, or hold the specific securities that will be used to meet the Fund's investment objectives.
3. Custodian. The custodian will physically (or through agreement with a sub-custodian) maintain possession of securities owned by the Fund, collect dividend and interest payments, redeem maturing securities, and effect receipt and delivery following purchases and sales. The custodian may also perform regular accounting of all assets owned, purchased, or sold, as well as movement of assets into and out of the Fund accounts.
4. Additional specialists such as attorneys, auditors, actuaries, and consultants, and others may be employed by the BFA Committee to assist in meeting its responsibilities and obligations to administer Fund assets prudently.

The BFA Committee will not reserve any control over investment decisions, with the exception of specific limitations described in these statements. Managers will be held responsible and accountable to achieve the objectives herein stated. While it is not believed that the limitations will hamper investment managers, each manager should request modifications which they deem appropriate.

If such experts employed are also deemed to be fiduciaries, all expenses for such experts must be customary and reasonable.

DEFINITIONS

1. "Fund" shall mean the Fielding Graduate University Endowment Fund, including quasi-endowment funds and endowment funds restricted as to the use of funds.
2. "BFA Committee" shall refer to the governing board established to administer the Fund as specified by the by-laws or committee charter.
3. "Fiduciary" shall mean any individual or group of individuals that exercise discretionary authority or control over fund management or any authority or control over management, disposition or administration of the Fund assets.
4. "Investment Manager" shall mean any individual, or group of individuals, employed to manage the investments of all or part of the Fund assets.
5. "Investment Management Consultant" shall mean any individual or organization employed to provide advisory services, including advice on investment objectives and/or asset allocation, manager search, and performance monitoring.
6. "Securities" shall refer to the marketable investment securities which are defined as acceptable in this statement.
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7. "Investment Horizon" shall be the time period over which the investment objectives, as set forth in this statement, are expected to be met. The investment horizon for this Fund is 10 years.

ASSIGNMENT OF RESPONSIBILITY

Responsibility of the Investment Consultant(s)

The Investment Consultant's role is that of a non-discretionary advisor to the BFA Committee of Fielding Graduate University. Investment advice concerning the investment management of Fund assets will be offered by the Investment Consultant, and will be consistent with the investment objectives, policies, guidelines and constraints as established in this statement. Specific responsibilities of the Investment Consultant include:

1. Assisting in the development and periodic review of investment policy.
2. Conducting investment manager searches when requested by the BFA Committee.
3. Monitoring the performance of the Investment Manager(s) to provide the BFA Committee with the ability to determine the progress toward the investment objectives.
4. Communicating matters of policy, manager research, and manager performance to the BFA Committee.
5. Reviewing Fund investment history, historical capital markets performance and the contents of this investment policy statement to any newly appointed members of the BFA Committee.

Responsibility of the Investment Manager(s)

Each Investment Manager must acknowledge in writing its acceptance of responsibility as a fiduciary. Each Investment Manager will have full discretion to make all investment decisions for the assets placed under its jurisdiction, while observing and operating within all policies, guidelines, constraints, and philosophies as outlined in this statement. Specific responsibilities of the Investment Manager(s) include:

1. Discretionary investment management including decisions to buy, sell, or hold individual securities, and to alter asset allocation within the guidelines established in this statement.
2. Reporting, on a timely basis, quarterly investment performance results.
3. Communicating any major changes to economic outlook, investment strategy, or any other factors which affect implementation of investment process, or the investment objective progress of the Fund's investment management on a minimum of a quarterly basis.
4. Informing the BFA Committee regarding any qualitative change to investment management organization: Examples include changes in portfolio management personnel, ownership structure, investment philosophy, etc.
5. Voting proxies, if requested by the BFA Committee, on behalf of the Fund, and communicating such voting records to the BFA Committee on a timely basis.

GENERAL INVESTMENT PRINCIPLES

1. Investments shall be made solely in the interest of the beneficiaries of the Fund.
2. The Fund shall be invested with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent man acting in like capacity and familiar with such matters would use in the investment of a fund of like character and with like aims.
3. Investment of the Fund shall be so diversified as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so.
4. The BFA Committee may employ one or more investment managers of varying styles and philosophies to attain the Fund's objectives.
5. Cash is to be employed productively at all times, by investment in short term cash equivalents to provide safety, liquidity, and return.

INVESTMENT MANAGEMENT POLICY

1. Preservation of Capital - Consistent with their respective investment styles and philosophies, investment managers should make reasonable efforts to preserve capital, understanding that losses may occur in individual securities.
2. Risk Aversion - Understanding that risk is present in all types of securities and investment styles, the BFA Committee recognizes that some risk is necessary to produce long-term investment results that are sufficient to meet the Fund's objectives. However, the investment managers are to make reasonable efforts to control risk, and will be evaluated regularly to ensure that the risk assumed is commensurate with the given investment style and objectives.
3. Adherence to Investment Discipline - Investment managers are expected to adhere to the investment management styles for which they were hired. Managers will be evaluated regularly for adherence to investment discipline.

GOAL OF ENDOWMENT

The BFA Committee feels that operations and programs to be carried out in the future are as important as operations and programs carried out today. This is consistent with the philosophy that this Endowment is to exist in perpetuity, and therefore, should provide for grant making in perpetuity. To attain this goal, the overriding objective of this foundation is to maintain purchasing power. That is, net of spending, the objective is to grow the aggregate portfolio value at the rate of inflation over the Endowment's investment horizon. The Endowment's specific investment objectives will be established later in this document.

ATTITUDE TOWARD GIFTS

Future giving (contributions) to this Endowment is expected to be inconsistent, and therefore, unpredictable. As a result, the BFA Committee has set an investment strategy with the objective of maintaining purchasing power of Endowment assets before consideration of gifts. Accordingly, future giving will serve to increase purchasing power. Therefore, expectations may be expressed by the following equation:

Total Return = Spending + Inflation + Expenses,
                          while Giving = Increase in Purchasing Power

SPENDING POLICY

This Endowment places high emphasis on meeting its operations and programs making obligations. As such, the BFA Committee regards spending in dollar terms from year to year as flexible in the starting years of this Fund. While spending is flexible, and therefore relatively predictable, expected investment returns from "riskier" portfolios are not consistent and predictable. Therefore, in order to reduce the likelihood of underperformance and excessive deterioration of real principal during such periods, this Endowment prefers to establish a more "moderate spending policy and balanced investment strategy”. The BFA Committee will set spending equal to 3% of the portfolio value on a rolling twelve quarter basis as of December 31st for the next fiscal year.

INVESTMENT OBJECTIVES

In order to meet its needs, the investment strategy of the Fielding Graduate University is to emphasize total return; that is, the aggregate return from capital appreciation and dividend and interest income.

Specifically, the primary objective in the investment management for Fund assets shall be:

Preservation of Purchasing Power After Spending - To achieve returns in excess of the rate of inflation plus spending over the investment horizon in order to preserve purchasing power of Fund assets. Risk control is an important element in the investment of Fund assets.

The secondary objective in the investment management of Fund assets shall be:

Long-Term Growth of Capital -To emphasize long-term growth of principal while avoiding excessive risk. Short-term volatility will be tolerated in as much as it is consistent with the volatility of a comparable market index.

SPECIFIC INVESTMENT GOALS

Over the investment horizon established in this statement, it is the goal of the aggregate Fund assets to exceed:

The rate of inflation (as measured by the Consumer Price Index) by 4%

The investment goals above are the objectives of the aggregate Fund, and are not meant to be imposed on each investment account (if more than one account is used). The goal of each investment manager, over the investment horizon, shall be to:

1. Meet or exceed the market index, or blended market index, selected and agreed upon by the BFA Committee that most closely corresponds to the style of investment management.
2. Display an overall level of risk in the portfolio which is consistent with the risk associated with the benchmark specified above. Risk will be measured by the standard deviation of quarterly returns.

Specific investment goals and constraints for each investment manager, if any, shall be incorporated as part of this statement of investment policy. Each manager shall receive a written statement outlining his specific goals and constraints as they differ from those objectives of the entire Fund.

DEFINITION OF RISK

The BFA Committee realizes that there are many ways to define risk. It believes that any person or organization involved in the process of managing the Fielding Graduate University assets understands how it defines risk so that the assets are managed in a manner consistent with the Fund's objectives and investment strategy as designed in this statement of investment policy. The BFA Committee defines risk as:

The probability of not maintaining purchasing power over the Fund's investment time horizon.

LIQUIDITY

To minimize the possibility of a loss occasioned by the sale of a security forced by the need to meet a required payment, the BFA Committee will periodically provide investment counsel with an estimate of expected net cash flow. The BFA Committee will notify the investment consultant in a timely manner, to allow sufficient time to build up necessary liquid reserves.

To maintain the ability to deal with unplanned cash requirements that might arise, the BFA Committee requires that a minimum of 2% of Fund assets shall be maintained in cash or cash equivalents, including money market funds or short-term U.S. Treasury bills.

MARKETABILITY OF ASSETS

The BFA Committee requires that all of Fund assets be invested in liquid securities, defined as securities that can be transacted quickly and efficiently for the Fund, with minimal impact on market price.

INVESTMENT GUIDELINES

Allowable Assets

1. Cash Equivalents
   • Treasury Bills
   • Money Market Funds
   • Commercial Paper
   • Certificates of Deposit
2. Fixed Income Securities
   • U.S. Government and Agency Securities
   • Corporate Notes and Bonds
   • Mortgage Backed Bonds
   • Preferred Stock
   • Fixed Income Securities of Foreign Governments and Corporations
3. Equity Securities
   • Common Stocks
   • Convertible Notes and Bonds
   • Convertible Preferred Stocks
   • American Depository Receipts (ADRs) of Non-U.S. Companies
   • Stocks of Non-U.S. Companies (Ordinary Shares)
4. Mutual Funds
   • Mutual Funds which invest in securities as allowed in this statement.
5. Other Assets
   • Alternative Investments and Fund of Funds, Reit Funds or managed accounts

Derivative Investments

Derivative securities are defined as synthetic securities whose price and cash flow characteristics are based on the cash flows and price movements of other underlying securities. Most derivative securities are derived from equity or fixed income securities and are packaged in the form of options, futures, CMOs (PAC bonds, IOs, POs, residual bonds, etc.), and interest rate swaps, among others. The BFA Committee feels that many derivative securities are relatively new and therefore have not been observed over multiple economic cycles. Due to this uncertainty, the BFA Committee will take a conservative posture on derivative securities in order to maintain its risk averse nature. Since it is anticipated that new derivative products will be created each year, it is not the intention of this document to list specific derivatives that are prohibited from investment, rather it will form a general policy on derivatives. Unless a specific type of derivative security is allowed in this document, the Investment Manager(s) must seek permission from the BFA Committee to include derivative investments in the Fund's portfolio. The Investment Manager(s) must present detailed information as to the expected return and risk characteristics of such investment vehicles.

Stock Exchanges

To ensure marketability and liquidity, investment advisors will execute equity transactions through the following exchanges: New York Stock Exchange; American Stock Exchange; and NASDAQ over-the-counter market. In the event that an Investment Manager determines that there is a benefit or a need to execute transactions in exchanges other than those listed in this statement, approval is required from the BFA Committee.

Prohibited Assets

Prohibited investments include, but are not limited to the following:

1. Commodities and Futures Contracts(Funds may be acceptable upon committee review&approval)
2. Private Placements(Funds may be acceptable upon committee review& approval)
3. Options
4. Limited Partnerships(LP’s may be acceptable upon committee review& approval)
5. Venture-Capital Investments(upon review& approval)
6. Real Estate Properties(upon review & approval)

Prohibited Transactions

Prohibited transactions include, but are not limited to the following:

1. Short Selling outside of an Alternate Fund of Funds managed portfolio
2. Margin Transactions outside of an Alternative Fund of Funds managed portfolio

Asset Allocation Guidelines

Investment management of the assets of Fielding Graduate University shall be in accordance with the following asset allocation guidelines:

1. Aggregate Fund Asset Allocation Guidelines (at market value)
   
   

Asset Class	Minimum	Maximum	Preferred
Equities	50%	70%	60%
Fixed Income	28%	48%	38%
Cash and Equivalents	2%	20%	2%


In turn, the current Equity and Fixed Income styles of management are allocated as follows:


Asset Class	Current	Long-Term Strategic	Min / Max
Mid/Large Value Equities	17.5%	20%	10% / 30%
Mid/Large Growth Equities	17.5%	15%	5% / 25%
International Equities	15%	15%	5% / 25%
Small Cap Equities	10%	10%	5% / 20%
Intermediate Fixed Income	40%	40%	30% / 50%

 

1. The BFA Committee may employ investment managers whose investment disciplines require investment outside the established asset allocation guidelines. However, taken as a component of the aggregate Fund, such disciplines must fit within the overall asset allocation guidelines established in this statement. Such investment managers will receive written direction from the BFA Committee regarding specific objectives and guidelines if appropriate to do so.
2. In the event that the above aggregate asset allocation guidelines are violated, for reasons including but not limited to market price fluctuations, the BFA Committee will instruct the Investment Manager(s) to bring the portfolio(s) into compliance with these guidelines as promptly and prudently as possible. In the event that any individual Investment Manager's portfolio is in violation with its specific guidelines, for reasons including but not limited to market price fluctuations, the BFA Committee expects that the Investment Manager will bring the portfolio into compliance with these guidelines as promptly and prudently as possible without instruction from the BFA Committee.

Rebalancing Asset Allocation To Targets

The Endowment Board has adopted a rebalancing strategy to maintain the above established asset allocation targets. Inasmuch as asset classes grow over time at different rates, the actual allocation at any point may be significantly different. Furthermore, there are substantial risk and cost implications if the Fund is out of balance at a point in time and a major market event occurs. An automatic rebalancing procedure reduces overall portfolio risk by timely and continuous maintenance of the allocation targets.

The Committee has chosen the use of a ±10 percentage range of drift or threshold for the Cash/Fixed Income/Equity. Rebalancing the Funds asset mix will be implemented on a quarterly basis, or as needed, due to market changes and cash flow of the Fund.

Diversification for Investment Managers

The BFA Committee believes it is desirable that securities held in the Fund represent a cross section of the economy. However, in order to achieve a prudent level of portfolio diversification, the securities of any one company or government agency should not exceed 12% of the total fund, and no more than 30% of the total fund should be invested in any one industry. Individual treasury securities may represent 38% of the total fund, while the total allocation to treasury bonds and notes may represent up to 100% of the Fund's aggregate bond position.

Guidelines for Fixed Income Investments and Cash Equivalents

1. Fund assets may be invested in bonds rated BB (or equivalent) or better.
2. Fund assets may be invested only in commercial paper rated A1 (or equivalent) or better.
3. Fixed income maturity restrictions are as follows:
   • Maximum maturity for any single security is 20 years.
   • Weighted average portfolio maturity may not exceed 10 years
4. Money Market Funds selected shall contain securities whose credit rating at the absolute minimum would be rated investment grade by Standard and Poors, and/or Moody's.

SELECTION OF INVESTMENT MANAGERS

The BFA Committee' selection of Investment Manager(s) must be based on prudent due diligence procedures. A qualifying investment manager must be a registered investment advisor under the Investment Advisors Act of 1940, or a bank or insurance company.

INVESTMENT MANAGER PERFORMANCE REVIEW AND EVALUATION

Performance reports generated by the Investment Consultant shall be compiled at least quarterly and communicated to the BFA Committee for review. At least annually, the BFA Committee will communicate performance results to the full Board of Trustees. The investment performance of total portfolios, as well as asset class components, will be measured against commonly accepted performance benchmarks. Consideration shall be given to the extent to which the investment results are consistent with the investment objectives, goals, and guidelines as set forth in this statement. The BFA Committee intends to evaluate the portfolio(s) over a rolling three year period, but reserves the right to terminate a manager for any reason including the following:

1. Investment performance which is significantly less than anticipated given the discipline employed and the risk parameters established, or unacceptable justification of poor results.
2. Failure to adhere to any aspect of this statement of investment policy, including communication and reporting requirements.
3. Significant qualitative changes to the investment management organization.

Investment managers shall be reviewed regularly regarding performance (net of fees), personnel, strategy, research capabilities, organizational and business matters, and other qualitative factors that may impact their ability to achieve the desired investment results.

INVESTMENT POLICY REVIEW

To assure continued relevance of the guidelines, objectives, financial status and capital markets expectations as established in this statement of investment policy, the BFA Committee plans to review investment policy at least annually.

(For committee driven accounts)
This statement of investment policy is approved and adopted on January 26th, 2005 by the Budget, Finance, & Audit Committee of Fielding Graduate University.

This statement of investment policy is approved and adopted on March 2nd, 2005 by the Executive Committee of Fielding Graduate University.

______________________________ ______________________________
______________________________ _Chair ____________________
______________________________ _Treasurer_____________________
______________________________ _President_____________________
______________________________ ______________________________
______________________________ ______________________________
______________________________ ______________________________

Fielding Graduate University Addendum:
Summary of Portfolio Structure & Manager Objectives

Current Investment Consultant: Mark Brenner Consulting Group A Division of Smith Barney

Current Aggregate Fund Assets: $1,000,000

Strategic Asset/Style Allocation	Manager Names	Assets		Style	Index/ Benchmark
17.5%	Cambiar Investors	175,000		Lrg–Cap Value Equity	R1000V
17.5%	Santa Barbara Asset	175,000		Lrg–Cap Growth Equity	R1000G
15%	Deleware Int’l	150,000		Lrg-Cap International Equity	EAFE-GDP
10%	Babson	100,000		Sm–Cap Value Equity	R2000V
40%	PIMCO	400,000		Intermediate Bonds	LB G/C Int.
	Total	$1,000,000

Investment Management Structure:

Where:

• R1000V is the Russell 1000 Value Index.
• R1000G is the Russell 1000 Growth Index.
• R2000 is the Russell 2000 Index.
• EAFE–GDP is the Morgan Stanley Europe Australia Far East, Gross Domestic Product–weighted index.
• LB G/C Int. is the Lehman Brothers Government/Corporate Intermediate Bond Index.
• The Total Fund composite index will be a blended market index of Russell 1000V, Russell 1000G, Russell 2000, EAFE–GDP Int’l Equity Index, and the Lehman Brothers Government/Corporate Intermediate Bond Index in the same asset mix as your portfolio. The mix is adjusted based on changes in your portfolio. Money Manager(s) performance will be evaluated net of fees.

Cambiar Investors

The investment objectives and guidelines for the assets managed by Cambiar Investors for Fielding Graduate University Endowment are defined in this document and in the Statement of Investment Policy, Objectives, and Guidelines. The policy items included in the investment policy statement are applicable for the entire Fund, but may not apply to each individual manager.

Specific Investment Goals

Over the ten year investment horizon established in the investment policy statement, it is the goal of the assets managed by Cambiar Investors to meet or exceed:

The return of the stock market as measured by the Russell 1000 Value Index. This will be measured on a rolling 3-year basis.

Volatility (Risk)

Cambiar Investors is expected to meet its objectives with a level of risk that is consistent with the risk associated with the index stated above.

Asset Allocation Guidelines

Cambiar Investors is expected to maintain a fully invested portfolio with cash allocation being as high as 20% of the portfolio based on market outlook.
Fielding Graduate

Santa Barbara Asset Management

The investment objectives and guidelines for the assets managed by Santa Barbara Asset Management for Fielding Graduate University Endowment are defined in this document and in the Statement of Investment Policy, Objectives, and Guidelines. The policy items included in the investment policy statement are applicable for the entire Fund, but may not apply to each individual manager.

Specific Investment Goals

Over the ten year investment horizon established in the investment policy statement, it is the goal of the assets managed by Santa Barbara Asset Management to meet or exceed:

The return of the stock market as measured by the Russell 1000 Growth Index. This will be measured on a rolling 3-year basis.

Volatility (Risk)

Santa Barbara Asset Management is expected to meet its objectives with a level of risk that is consistent with the risk associated with the index stated above.

Asset Allocation Guidelines

Santa Barbara Asset Management is expected to maintain a fully invested portfolio with cash allocation being as high as 20% of the portfolio based on market outlook.

Delaware International Equity

The investment objectives and guidelines for the assets managed by Delaware International Equity for Fielding Graduate University Endowment are defined in this document and in the Statement of Investment Policy, Objectives, and Guidelines. The policy items included in the investment policy statement are applicable for the entire Fund, but may not apply to each individual manager.

Specific Investment Goals

Over the ten year investment horizon established in the investment policy statement, it is the goal of the assets managed by Delaware International Equity to meet or exceed:

The return of the stock market as measured by the MSCI EAFE (GDP) Index. This will be measured on a rolling 3-year basis.

Volatility (Risk)

Delaware International Equity is expected to meet its objectives with a level of risk that is consistent with the risk associated with the index stated above.

Asset Allocation Guidelines

Delaware International Equity is expected to maintain a fully invested portfolio with cash allocation being as high as 20% of the portfolio based on market outlook.

Babson Small Cap

The investment objectives and guidelines for the assets managed by Babson Small Cap for Fielding Graduate University Endowment are defined in this document and in the Statement of Investment Policy, Objectives, and Guidelines. The policy items included in the investment policy statement are applicable for the entire Fund, but may not apply to each individual manager.

Specific Investment Goals

Over the ten year investment horizon established in the investment policy statement, it is the goal of the assets managed by Babson Small Cap to meet or exceed:

The return of the stock market as measured by the Russell 2000 Index. This will be measured on a rolling 3-year basis.

Volatility (Risk)

Babson Small Cap is expected to meet its objectives with a level of risk that is consistent with the risk associated with the index stated above.

Asset Allocation Guidelines

Babson Small Cap is expected to maintain a fully invested portfolio with cash allocation being as high as 20% of the portfolio based on market outlook.

Pimco Fixed Income

The investment objectives and guidelines for the assets managed by Pimco Fixed Income for Fielding Graduate University Endowment are defined in this document and in the Statement of Investment Policy, Objectives, and Guidelines. The policy items included in the investment policy statement are applicable for the entire Fund, but may not apply to each individual manager.

Specific Investment Goals

Over the ten year investment horizon established in the investment policy statement, it is the goal of the assets managed by Pimco Fixed Income to meet or exceed:

The return of the stock market as measured by the Lehman Brothers Government/Corporate Intermediate Bond Index. This will be measured on a rolling 3-year basis.

Volatility (Risk)

Pimco Fixed Income is expected to meet its objectives with a level of risk that is consistent with the risk associated with the index stated above.

Asset Allocation Guidelines

Pimco Fixed Income is expected to maintain a fully invested portfolio with cash allocation being as high as 20% of the portfolio based on market outlook.

Approved by:              President

Date approved:           June 13, 2006

·         Fielding’s institutional by-laws require signature of President and Treasurer (member of the Board of Trustees) on any document that creates a financial obligation for Fielding Graduate University in the amount of $250,000 or above or that extends more than 3 years in duration.

·         By individual resolution, the Board of Trustees authorizes signatories on specific bank accounts that include the President, Treasurer, CFO, and Provost.  A manual second signature is required for checks of $15,000 or above.

·         Designated positions may authorize expenditures in the form of purchase orders, contracts, or payments to vendors consistent with this policy for their areas of responsibility.  Levels of authorization for each position are listed in the appendix.  These levels will be routinely reviewed and modified with the approval of the President and CFO.  The levels have been set in consideration of the types of purchases routinely required for operation of the School, Department or Service Center.

During an absence: 

Budget managers are responsible for assigning authority to another employee to act on their behalf when they will be away from the office.  The budget manager needs to provide this information in writing in advance to Finance.  The acting budget manager should indicate that they are approving on behalf of another (e.g. J. Cohen for J. Chan).   

Restricted Funds:

Authorization for spending from restricted funds will be assigned to budget managers by the CFO and will become part of the approved fund policy.  This will be based on the nature of the restricted fund.

2.  Approvals for specific items:

a.       Contracts: 

i.        Contract signatures:  The President, Provost and CFO are authorized to sign contractual agreements for purchase of services and goods.   Authorized individuals listed in the appendix are also authorized to sign contractual agreements for the purchase of goods and services within their authorized limits if the agreement has a term of one year or less.  An employee who is recommending that another employee (i.e. Dean, Provost, CFO, etc.) sign a contract should include a written recommendation for approval of the agreement.   The list of authorized individuals is all inclusive meaning that unless an individual’s position is on this list, they do not have the authority to act on behalf of Fielding to purchase goods or services.

ii.      Resources for Questions:  The CFO and VP of HR/Admin are available as resources for questions about contractual language (i.e. payment terms, liability, etc.)

iii.    Legal review of contracts may be required prior to being signed.  The VP of Human Resources and Administration coordinates legal review of all contracts and will coordinate “standard terms and conditions” for all contracts.

iv.    Adjunct and research faculty contracts: the authority to sign adjunct and research faculty contracts is delegated to the Deans of the Schools.  Review of the contracts by VP of Human Resources is required in advance of execution.  For a new type of agreement or for agreements with special circumstances, Human Resources should be consulted prior to drafting the contract.

v.      Original contract files: Budget managers are responsible for providing all original contracts to the Finance Office.

b.      Independent Contractors:  Human Resources coordinates contracts for all independent contractors (see Payments for Services below): 

i.        HR may require use of a standard contract for certain types of services. 

1.      Consulting services:  Fielding’s standard agreement for consulting services is required for all consulting agreements.  Exceptions or changes to the use of this agreement requires approval from the Vice President of HR/Admin.

ii.      A contract must be signed in advance of work being started.  Payment will not be issued without a signed contract. 

iii.    Contracts for Adjunct and Research Faculty appointments are coordinated by Human Resources and approved by the Deans.  Adjunct and Research Faculty generally carry out a single function.  If the scope of work expands, it is the responsibility of the School to notify HR so that the contract may be reviewed for potential changes.

iv.    When an annual contract is in place, approval of individual invoices may be delegated to a budget manager based on their purchasing level of authority.  For example, the Dean would approve an annual contract and a Program Coordinator could approve individual monthly invoices.     

c.       Leases:  CFO approval is required for all lease agreements.  The CFO is authorized to sign lease agreements up to a term of 3 years and lease term payments of less than $100,000.  Lease agreements with a cost between $100,000 and $250,000 must be signed by the President.  The President and Treasurer of the Board of Trustees are authorized to sign agreements with a term of greater than 3 years or with payments exceeding $250,000.

d.      Capital expenditures – Purchase of budgeted fixed assets requires advance approval of the budget manager, the respective member of the President’s Leadership Team (PLT) and the following depending upon the amount of the purchase:

$250,000 or over                     President and Treasurer

$25,001 to $249,999               President

Up to $25,000                         Chief Financial Officer

Purchase of unbudgeted fixed assets that will result in the total annual approved capital expenditure budget being exceeded requires advance written approval of the budget manager, the respective member of the PLT and the following depending upon the amount of the purchase:

 

$100,000 or over                      BFA and Board of Trustees

$10,001 to $99,999                  President

Up to 10,000                            Chief Financial Officer

e.       Temporary services:   Invoices from temporary agencies must be approved by the VP of Human Resources and Administration.

f.       Computer related purchases:  Computer hardware purchases and software purchases must be coordinated through the IT Helpdesk.

3.  Comparative Quotes for Large Purchases:   Budget managers making large purchases must make every effort to obtain the best value for goods and services.  For contracts or purchases with a total value exceeding $10,000, the budget manager must obtain at least three comparative quotes.  The quotes and a justification for selection must be submitted to the Provost or CFO in advance of authorizing the expenditure.

4.  Credit accounts:  All vendor accounts and credit applications must be coordinated with Accounts Payable and approved by the Chief Financial Officer.

5.  Fielding’s standard payment terms:  Payment will only be made after the items have been received or after the services have been rendered.  Payment will be made 30 days from the date of the invoice unless otherwise agreed to by contract or advance agreement.

6.  Check requests:  A check request may be used to request a payment to an individual or company for: 

• Honorarium (i.e. external examiners)
• Cluster expense reimbursement to students or third parties
• Deposits (i.e. events, postage accounts, etc.)
• Subscriptions
• Payments on approved contracts in lieu of invoices
   

Check requests need to include the following information: name and address of vendor, reason for payment, amount, date to be paid, general ledger account number, signature of authorized budget manager.  Requests for payments to students must include student ID number and program name.  Appropriate documentation must accompany the check request (i.e. order form, registration form, quote, contract, etc.)

7.  Invoices:  Budget managers have the authority to make purchases up to their authorized limits.  Payment is made only from original invoices with an original signature from an authorized budget manger.  Originals are required to prevent duplicate payments which may occur with faxed invoices and emailed invoices.

Vendors should mail all invoices to:

Fielding Graduate University
Accounts Payable
2112 Santa Barbara St.
Santa Barbara, CA  93105

The invoice must indicate: 

•  Fielding contact name and/or department
• Purchase order number (if applicable)
• Vendor name, address, and phone number,
• description of services or items,
• dates service is rendered

 For invoices without a purchase order, Accounts Payable will date stamp the invoice and route the invoice for approval to the contact name on the invoice.   Payment is made based on Fielding’s standard payment terms unless otherwise agreed upon with the vendor. 

8.  Payments for Services:

a.       Payments for professional services: 

i.        Payment for professional services is made after services are rendered or work is complete.  Progress payments are allowed as the service is completed.  Advance payment for services is not allowed.

ii.      Invoices must indicate the dates when work was completed and the nature of work completed.

iii.    W-9 required:  Per IRS regulations, Fielding Graduate University is required to report the total amount paid to individuals (i.e. not corporations) who have been paid $600 or more during the calendar year on a 1099 form.  Signed W-9 forms are required in advance of payment to facilitate this reporting.

b.      Payments to employees:  Payments for services or work performed by employees are paid via payroll and will have income and employment taxes withheld per state and federal regulations.  Human Resources must approve payments to employees before the Payroll Administrator will issue payment.  Reimbursements for business and travel related expenses are covered in the Business and Travel Reimbursement Policy.

9.  Purchase of equipment and supplies:  Purchase of equipment and supplies must be done using the Datatel purchase order system for purchases exceeding $250.   (Purchases less than $250 may be purchased and reimbursed to the employee or using the institutional American Express card.)  An authorized purchase order number must be obtained in advance of placing an order with a vendor.    Purchase orders may also be used to expedite the purchase of other items and services (i.e. printed orders to be delivered to Sessions, service contracts, etc.)   Exceptions to this policy are allowed for off-site or emergency orders (i.e. at Session events).

Requisitions:  To receive an authorized purchase order, submit an approved requisition to Purchasing via the Datatel computer system.

The initiator completes the on-line requisition form in Datatel with the vendor name and address, items to be purchased, cost of the item plus taxes and shipping costs.

1. The initiator is responsible for obtaining on-line approvals and notifying Purchasing that the requisition is complete.
2.  Hardcopy quotes from vendors should be sent to Purchasing with the requisition number noted on the quote.  This assists accounts payable in paying the invoice according to agreed upon terms.
3. Requisitions for printed materials need to clearly state agreement with vendor on print overruns.
4. Purchasing reviews the requisition, authorizes the PO and distributes a hard copy signed PO to the initiator, the vendor (unless requested not to do so), accounts payable, and Production/Distribution.

10.   Cash on Delivery (COD):  If an item is purchased COD, the purchase order should clearly state the amount of payment and delivery date so that a check can be prepared in advance of delivery.

11.  Receiving shipments: 

a.  “Ship to” instructions on all purchase orders will read:  2020 De La Vina St., Santa Barbara, CA  93105

b.  Production/Distribution staff is responsible for opening and logging all incoming shipments.

c.  Shipments accompanied by packing slips or invoices with purchase order numbers will be counted and matched to the accompanying documentation.  For items with purchase orders, the Production/Distribution staff will enter the “items received” into the Datatel Purchase order system.  The Production/Distribution staff will send a copy of receiving copy of the purchase order and original documentation to accounts payable to match with the invoice.  Discrepancies between packing slips and contents will be reported to Purchasing to coordinate resolution to ensure that payment is only for items that have actually been received.

12.  Returned Items:  Notify Purchasing of returned items that were ordered with a purchase order.  Purchasing will assist with returns by coordinating with accounts payable in order to ensure that payment is not made for returned items.

13.  Invoice payment for regular purchase orders: 

a.  The “bill to” address for purchase orders is Accounts Payable, 2112 Santa Barbara St., Santa Barbara, CA  93105

b.  Accounts payable will match invoices, packing slips, and purchases orders and will pay the invoice without additional approvals from the initiator as long as:        

 

1. the invoice reflects the purchase order costs and quantities
2. the invoice amount is within 10% or $200 (whichever is less) of the amount of the approved PO
3. the invoice is within the overages or print overruns as indicated on the purchase order and/or quote.

14.   Blanket purchase orders:  blanket purchase orders may be used for a specific set of purchases that will be made from one vendor during the fiscal year or for a total amount that will be purchased from one vendor during the fiscal year.  Invoices paid under a blanket purchase order will require an approval signature. To set up a blanket purchase order contact Purchasing for assistance. 

15.  Check addresses:  Checks are written and mailed to the vendor address on the invoice.  Checks that will be hand delivered to a vendor by an employee may be given to the employee if so indicated on the check request. 

16.  Payment by wire transfer:  Payments by wire transfer are made only to adjunct faculty under contract residing in a foreign country.  All wire transfers require approval of the CFO.

17.  Check dates:  Regular check runs are scheduled for Friday of each week with exceptions made for holidays.  Generally, a complete approved invoice or check request received by Friday will be paid the following Friday.

18.  Internal controls:  It is the responsibility of the Finance Department to maintain adequate controls to safeguard the assets of the University.  The internal process for Finance is that each invoice is prepared for vouchering by Accounts Payable staff who checks that the invoice is original, that it is approved by an authorized budget manager and coded with an appropriate general ledger account code.  Accounting staff members review and approve general ledger accounting and approvals for compliance with GAAP.  Accounts payable staff prepares checks and check registers.  All checks and check registers are reviewed and approved with their documentation by the Chief Financial Officer.   

19.  Related parties:  An employee may not authorize a payment or sign a contract with an immediate family member or domestic partner.

Associated forms:

Requisition form (electronic in Datatel)

Purchase order form (electronic in Datatel)

Check request form

Standard consulting agreement

 

Approved By:           President

Date Approved:        April 20, 2010

Staff Responsibility:   Chief Financial Officer

History:                     Replaces policy dated August 19, 2008

Policy Statement: Fielding Graduate University will reimburse travelers for actual institution related travel, entertainment and business expenditures that are necessary and reasonable in conjunction with approved travel. It is intended that this policy apply to anyone (employee, independent contractors, consultants, students, trustees, etc.) requesting expense reimbursement from the University regardless of funding source.

a. Authorization: Approval to travel should be obtained by the traveler prior to reserving or undertaking official institution travel. Authorization for travel may also be initiated by the School (i.e Session, or at the invitation of the School or Service Center). Otherwise, expenses are incurred at the traveler’s risk. A Travel Authorization form is available on the Fielding website for use of supervisors, budget mangers, and travelers. Authorization may be made using e-mail or other forms of documentation. It is the responsibility of the traveler and those authorizing travel and reimbursement of expenditures to know and follow these procedures. 

Student, Alum, and Trustee Travel: On occasion, student representatives, alumni, and trustees may be asked to participate in governance or program related activities whereby Fielding pays for their travel. It is the responsibility of the employee sponsoring student, alum, or trustee travel to inform the traveler of this policy and to obtain budget manager approval in advance.

b. Expense Reporting Procedures: Requests for reimbursement of business expenses must be submitted within 60 days of completion of each expense or trip using the Business Expense Reimbursement Request form (in Finance Forms on the Fielding website). (Exception: at the end of the fiscal year expense reimbursements for travel through June 30 are to be submitted by the end of the first full week of July.)

The traveler is responsible for preparation of the form, including its completeness, accuracy, and compliance with policy. The following information is required for the form:

• description of the business purpose of the trip or expense
• amount, date and nature of each expense including name of persons who are entertained and the nature of the business purpose
• original receipts for all individual expenses over $25 except for meals covered by per diem
• receipts must include the name of the vendor, location, date, and amount of expense
• completed original Business and Travel Expense Reimbursement Request form with the traveler’s signature

 Compliance with policy: By signing the Business Expense Reimbursement Request form, employees and other travelers certify that expenses were incurred in the course of Fielding Graduate University related business. Falsification of expense reimbursement requests or similar abuses of this policy may result in disciplinary action up to and including termination of employment.

Approvals:

• The employee’s supervisor must approve the expense reimbursement request. Faculty expense reimbursement requests require approval by the Dean of the School or a designated Associate Dean. The President’s expense reports are approved by the Board Treasurer.
• The individual with budget approval authority for the department or account must also approve the form (in some cases these are the same individual). 
• The supervisor and/or budget manager submits the original complete approved request form to Finance for payment.

 Processing: Employees are encouraged to provide a note or explanation of any atypical expense in order to expedite approval and payment. A request that is incomplete or contains errors when it is received in the Finance department may be returned to the supervisor or budget manager for corrections resulting in delay or non-reimbursement of specific items. The traveler may also be contacted to provide required information. Employees should expect to receive their expense reimbursement check within 14 days from the time the request is received in the Finance Department. 

 Payment for services provided to Fielding Graduate University (i.e. consulting hours or honorarium) are to be made in accordance with the Independent Contractor Policy. Payments for services to Fielding Graduate University employees are made through payroll in accordance with the Compensation Policy

 c. Approval Authority and Accountability:   Supervisors and budget managers are authorized to approve reimbursement for employees reporting to them and for their areas of financial responsibility respectively. Further, they are responsible for ensuring that:

• the Business Expense Reimbursement Request form and accompanying documentation is complete;
• expenses have been incurred in the best interest of the institution; and
• expenses are reasonable and incurred as outlined in this policy.

 Employees may not approve reimbursements for themselves, their supervisor or a related individual (e.g. spouse).

 

d. Receipts and Tax Issues: The Internal Revenue Service requires specific documentation to support employee travel, entertainment and business expenses. Minimum documentation requirements include original receipts for all transportation and lodging expenses and for any other expenditure. Fielding Graduate University retains expense reimbursement documentation for seven years.

Deviation from this policy may require the institution to include any reimbursements in the employee’s taxable wages subject to applicable taxes/withholdings. 

 

e. Transportation: Mode of transportation used should be the most economical one suitable for the purpose of the trip.  Transportation will be reimbursed for travel from the employee's primary residence to travel destination  and back to the primary residence.

 

 Airline: The institution will reimburse coach/economy airfares.   Any frequent flier mileage awards accrue to the employee or individual requesting reimbursement. Reimbursement will not be made for air travel using mileage awards. 

Booking Travel : To best serve Fielding’s business travel needs, Santa Barbara Travel (SB Travel) has been designated as the institution’s travel agency. The Director of Conference and Events Services is responsible for coordinating policies with SB Travel. To best serve employees and to manage expenses, the following guidelines apply to booking airfares:

1. Employees are asked to book all air travel through SB Travel. The employee will be asked to state the purpose of travel. Airfare will be charged to Fielding’s corporate account.   Depending on the nature of the transaction, SB Travel charges a fee for service paid by the University.
2. In order to minimize costs employees are expected to:
   1. utilize “Highwire/Travelport”, SB Travel’s electronic booking service;
   2. use advance planning to take advantage of 30-day fares;
   3. work with SB Travel’s Corporate agent on multi-segment air travel;
   4. be aware of restrictions and fees placed on “non-refundable” fares; and
   5. avoid re-ticketing fees from schedule changes.
3. An employee wishing to combine business and personal travel must obtain advance authorization from their supervisor or budget manager. Air travel that combines business and personal travel must be booked with the SB Travel Corporate Agent so that the Corporate Agent can determine the cost of personal travel and document the amount on the itinerary submitted to Fielding. The traveler must submit a check to Fielding’s Accounts Payable staff at the time of booking. Travelers other than employees wishing to combine personal travel with Fielding business travel are not authorized to charge personal travel to the Fielding Corporate Account at Santa Barbara Travel.
4. SB Travel will notify the Director of Conference and Events Services of any extraordinary fares prior to booking;
5. If airfare is booked in some way other than through SB Travel, reimbursement will be made after travel has occurred. Reimbursement will only be made for the lowest coach airfare reasonably available. For reimbursement, the acceptable original receipt is either the “passenger receipt card” or the detailed itinerary that shows amount paid, travel dates, and travel destination. Documentation showing round trip travel airfare should be included in the reimbursement request. Travel agency fees for agencies other than SB Travel will be reimbursed up to the amount of the SB Travel fee of $38.
6. Airline baggage fee: Employees will be reimbursed for up to two pieces of luggage per trip.

 Automobile (Personal): Mileage incurred while conducting business is reimbursable to the extent that the mileage exceeds normal commuting miles to and from the University. When traveling by automobile out of town on routes served by a common air carrier, the amount of actual mileage or the lowest available airfare (for travel at reasonable hours), whichever is less, will be reimbursed.    The mileage allowance is the rate per mile as set by the IRS    An employee using his or her own vehicle for institution business is responsible for all vehicle operating costs, fuel costs, insurance, repairs, and maintenance.   It is the employee’s responsibility to carry adequate insurance coverage. Fielding’s insurance does not cover use of personal automobiles.

  Automobile (University Owned): Gasoline receipts will be reimbursed, not mileage.

Automobile (Rental): Car rental is reimbursable when other surface transportation is not practical or economical. Documentation for reimbursement is the original car rental receipt showing rental details and amount paid. Corporate credit card holders are required to use their institution issued credit card  to obtain low cost insurance. 

i. Employees may avoid the need to take any collision or liability insurance at the counter when they rent a vehicle by indicating below the signature line that the rental is “on behalf of Fielding Graduate University”. Fielding liability policy provides physical damage coverage for hired autos, as well as liability coverage.

 

ii. The employee is responsible for following all rental car guidelines, including obtaining authorization for additional drivers, reporting accidents, etc.

iii. Additional drivers who are Fielding employees: policies vary by rental car company and location. For example, as of June 2003, the Avis policy on additional drivers posted on their website allows co-workers with a valid driver's license to drive a rental vehicle without showing the drivers license at the rental counter. If your travel plans include the need for a coworker to be an additional driver, confirm that this is consistent with the rental company’s current policies for the rental location.

iv. To minimize expenses employees should return the car to the original rental location with a full tank of gas whenever reasonably possible.

Ground Transportation, Toll Charges: Preferred choices for ground transportation are shuttle service, public limousine service, or other forms of public transportation. Public limousine service or shuttle service (i.e. between the work place and the airport) should be used only when the ground trip cost of such service is less than the parking cost and/or mileage reimbursement. Taxis are to be used only when public limousine service or other transportation is more costly, unavailable or unsuitable. 

 Parking Fees:  Reasonable parking costs are reimbursable. To minimize expenses, employees should use long term parking at airports. Short term parking for more than one day should not be used.

f. Lodging: 

Lodging is reimbursable for an employee who must stay out of town overnight to conduct Fielding business.   Employees are to choose lodging that has reasonable single room rates. The original hotel folio detailing all charges is required for reimbursement since personal charges are often charged to the room account. The employee is responsible for canceling room reservations. Reimbursement requests for charges associated with failure to cancel a room reservation must include a written explanation.

 Session Lodging: National, Research and New Student Sessions are coordinated by Conference and Event Services. To obtain lodging, traveler must complete the session questionnaire. Room and tax are direct billed to Fielding and the traveler is responsible for all other charges. The traveler is responsible for notifying Conference and Event Services of any cancellations or changes to travel plans.

g. Meals and Entertainment:

Employees - Per Diem for Personal Meals: Personal meal expenses for employees while traveling on out of town business are provided for with a per diem allowance. Receipts need not be submitted for any meal covered by per diem.

i. Fielding uses the daily per diem rates for meals and incidental expenses (M&IE) as established by the US Government General Services Administration by location.   Depending on location the domestic rates range from about $39-$64 per day. These rates are located at on the General Services Administration website and a link can be found on the Travel section of the Fielding website.

ii. Per diem is reimbursed using the expense report after travel.

iii. When meals are provided to employees at no additional cost as part of a conference, or Fielding sponsored event, the employee should reduce their diem requests as follows and may round to the nearest dollar:

• Breakfast   -           20%
• Lunch        -           25%
• Dinner       -           55%

 iv. Employees who attend business meals paid for by another Fielding employee (i.e. as part of an entertainment expense) should reduce the per diem allowance using these same rates. 

v. Generally, the per diem rate for the first and last day of travel is 75% of the full day per diem rate. If travel begins early in the day (i.e. before 8 am) or ends late in the day (i.e. after 6 pm) per diem may be requested for a full day. Travel begins when the employee leaves home or the workplace.

vi. Expenses incurred for business related personal meals in Santa Barbara for Santa Barbara based employees must be substantiated with receipts.

Non Employee Personal Meals (i.e. students) – Reimbursement is based on cost as shown on the original receipt.

 Business Meals and Entertainment Expenses: Business meals are meals taken during which specific business discussion takes place. When more than one University employee is present during a meal, the highest-ranking approval authority, in most circumstances, should bear the associated expense and seek reimbursement. Reimbursement requests must include the original receipt, name, title, and organization for each person entertained and the nature of the business discussion. The itemized receipt showing the restaurant name and address, date, number of guests, total amount, etc. is the preferred documentation for an entertainment expense. Alcoholic beverages may be reimbursed at a reasonable level when associated with business entertainment.

h. Communication: Expenses incurred for telephone and internet for business purposes while traveling are reimbursable.   Personal calls are reimbursable up to $10 per day.  If the expense for a trip exceeds $25 a receipt is to be provided as documentation.

i. Foreign Travel: In general, foreign travel follows the same guidelines and procedures as domestic travel. Additional provisions for reimbursement are:

1. Employees are encouraged to pay for travel expenses with a credit card in order to minimize currency exchange fees and simplify calculations;
2. Requests for reimbursements must be stated in U.S. dollars and include documentation for currency exchange rates (i.e. credit card or currency change receipt);
3. Travelers are responsible for obtaining their own visas and passports. The cost of obtaining a passport and/or visa for a specific trip is reimbursable with original receipts;
4. Per diem rates for international cities is provided for meals. Depending on location these rates range from about $15-$175 per day. These rates are located at on the General Services Administration website and a link can be found on the Travel section of the Fielding website.
5. Fielding Graduate University carries foreign liability coverage, including an employee assistance program for in-country emergencies. Employees planning overseas travel on behalf of Fielding should contact Human Resources, in order to clarify emergency travel assistance coverage available to them and to obtain international contact numbers and policy numbers. 

j. Travel Advances: Employees may request a travel advance to minimize out of pocket expenses using a travel advance form (located on the Finance-Forms page on the Fielding website).  The advance may be issued up to 30 days prior to travel. After travel the advance should be included as a deduction on the expense reimbursement form.  If there is a remaining balance from the advance, the remaining balance of the travel advances must be repaid when the reimbursement request is submitted.

If it is not paid within 60 days after the trip the remaining balance may be reported as taxable wages per IRS regulations.   Employees with outstanding travel advances will not be issued additional advances if the 60 day time period has passed.

Session advance amounts are determined by the School Program Coordinators in conjunction with Conference and Event Services and Accounts Payable staff for National Sessions, Research Sessions, and New Student Orientations. The list is created from the attendance dates indicated on the session questionnaire completed by the employee. Employees may request not to receive a Session travel advance.

k. Tips: Reasonable tips associated with services such as meals, taxi, porters, etc are reimbursable. 

l. Travel insurance: All employees are covered for Travel Accident with a death benefit of $100,000. An additional $10,000 death benefit is included, if death occurs in an auto accident and it is evident that the employee was wearing an approved seat belt.

m. Cluster expenses: This policy applies to travel related expense reimbursements for clusters and cohorts. Further guidelines regarding cluster expenses are set by the Schools.

n. Non-reimbursable expenses: The following is a general list of non-reimbursable expenses. It is not all-inclusive.

 

•  travel insurance
• airline class upgrades
• ticket fees for changes to scheduled air travel reservations due to personal preference
• mileage award travel
• lost or unused airline tickets
• excess luggage charges for personal items
• traffic and parking violations, car repair or maintenance
• faculty office expenses covered by the Faculty Office Allowance
• membership fees such as: airline club, rental car club, country or health club fees
• credit card annual fees, delinquency fees or finance charges
• personal services such as: medical care, baby-sitting, hair salons, health club facilities, sports, saunas, massages, laundry/dry cleaning, pet care, video rentals, movies, car washes or shoe shines
• personal care items such as toiletries, medications, etc.
• lost or damaged items such as luggage, briefcases, books, magazines, or other personal property
• expenses related to the personal portion of travel, including a family member or spouse accompanying the employee
• gift certificates for the purpose of rewarding employees for performance

o. Other business expenses: Reasonable and authorized expenses incurred by employees in the performance of their job responsibilities may be reimbursed following the guidelines previously outlined in this policy.

p. Policy interpretation: The CFO has the authority for final interpretation of this policy. Any exceptions to this policy or special circumstances require written approval (in advance, if feasible) of the employee’s supervisor and the CFO and must include supporting documentation of the exception or circumstance.

 

q. Travel Time for Non-Exempt Employees: Non-exempt employees traveling outside of their normal schedule may be eligible for overtime.  Refer to the Employee Handbook for further information.

 

r. Compliance with policy: By signing the Business Expense Reimbursement Request form, employees and other travelers certify that expenses were incurred in the course of Fielding Graduate University related business. Falsification of expense reimbursement requests or similar abuses of this policy may result in disciplinary action up to and including termination of employment.

Procedure:

1.   Fielding Graduate University:

• Fielding Graduate University is required to report all awards “administered and processed for payment of the student’s costs of attendance” annually on a 1098-T form.  
• The Finance Office is responsible for timely and accurate reporting.
• Awards are posted to the student’s account by the Financial Aid Office and will appear on the student’s 1098T form.

2.   Student: The student is responsible for determining the tax status of an award and and is responsible for keeping appropriate records to substantiate qualified tuition and expenses. It is important for a student to retain copies of bills, receipts, cancelled checks or other documents that would show the use of the award.

B.   Tax Status: The Internal Revenue Services provides the following guidelines for awards to students:

1.   Scholarships and Fellowships: To be tax free, the scholarship or fellowship must meet the following IRS criteria:

• “A scholarship or fellowship is tax free only if you are a candidate for a degree at an educational institution, and the grant is a qualified scholarship or fellowship.”
• “Qualified scholarship or fellowship. A qualified scholarship or fellowship is any amount you receive as a scholarship or fellowship grant that is used under the terms of the grant for:
• Tuition and fees required to enroll in, or to attend, an educational institution, or
• Fees, books, supplies, and equipment that are required for the courses at the educational institution. These items must be required of all students in your course of instruction.”

2.   Qualified Tuition Reduction for graduate education: “A tuition reduction for graduate education is tax free if the reduction is provided by an educational institution to a graduate student who performs teaching or research activities for that institution. The qualified tuition reduction must be for education furnished by that institution, and not represent payment for services.”

3.   Room, board and travel for the benefit of the student: Scholarships or fellowship payments for room, board, and travel are taxable.

4.   Room, board and travel for the benefit of Fielding Graduate University: Based on our understanding of tax regulations and with advice from our tax accountant, reimbursement for room, board and travel for students who are invited to serve on governance boards (i.e. Board of Trustees, Fielding Council, Schools governance committees, etc.) is not a fellowship or grant and is not taxable. Fielding is not required to report these reimbursements on a 1099 or 1098T form.

5.   Wages or compensation: Students who are paid wages for the performance of services will have applicable federal and state taxes withheld per IRS regulations. Wages and compensation are paid through payroll.

C.   Effect on Student Loan Eligibility: Federal regulations require that the Financial Aid Office consider all student resources when determining financial aid eligibility. Therefore, receipt of an award may affect a student’s eligibility for financial aid. Students should contact the Financial Aid Office with questions about how an award may affect their eligibility.

D.   Processing an Award:

1.   Awards to be issued at the time of term tuition billing: Students are billed tuition via mailed student account statements (two or three times per year depending on the program) 30 days in advance of the first day of the term. For an award appear on the mailed student account statement  the approved  award notification must be submitted to Financial Aid as follows:  

	Fall Term (Sept-Dec)	Spring Term (Jan-Apr)	Summer Term (May-Aug)
Award notification to Financial Aid	July 15	November 15	March 15
Student tuition billed	August 1	December 1	April 1

 

2.   Awards at other times of year: Awards may also be posted at other times of year.

3.   Scholarship/Fellowship/Grant Award Form: The authorized award manager submits the completed the “Award Form” with the following information and to the Financial Aid Office:

1. Student name and identification number
2. Graduate Program and School
3. Name of the Award
4. Date of the Award
5. Amount of the Award
6. Term (if left blank the award will be made in the current term)
7. Payment Dates
8. Payment instructions
9. Name of person initiating the request
10. Signature of approver
11. Attach award notification to student if applicable

4.   Approval authorization: Approved Award Programs: Award Programs must be approved by the Provost and Chief Financial Officer (see Scholarships, Fellowships, and Research Grants Program Policy). Each Approved Program will designate the employee authorized to issue the awards. Once approved by the CFO and Provost, the Finance Office will issue an AR Code in order to charge the appropriate general ledger account and the designated budget manager will have the authority to approve an award. 

5.    Processing the award:

1. Financial aid posts the award to the student’s account, confirms with the student that the award has been posted, and sends a general information letter about the award.
2. Financial Aid forwards Award documentation to Student Accounts.
3. Student Accounts will review the student’s account and if necessary issue a check or mail a statement to the student based on information on the Award Form.

6.   Awards for Alumni: Fielding has award programs for alumni. In order to pay an awards to alumni (or any inactive student), submit a check request to Accounts Payable with appropriate documentation.

Related Policies:

• Scholarships, Fellowships, Grants: Program Approvals 

Approved By: President and the President’s Leadership Team

Staff Responsibility:   Provost and Chief Financial Officer

Policy: The purpose of this policy is to facilitate scholarship, fellowship and research grant award programs (hereafter referred to as “award programs” for Fielding Graduate University and to ensure that the programs are administered to the maximum benefit for students and with the wishes of the donors.

Procedure:

1. Establishment of an Award Program:
   1. Fielding funded programs: The Provost or Dean of a School may propose a scholarship, fellowship, or research grant award program to be funded from the operating budget of their school or service center. 
   2. Programs funded by donors: General scholarship funds have been established for each School. New named scholarship funds may only be established with the approval of the President and the Development Director.
2. Approvals:  All award programs need to be approved by the Provost and the Chief Financial Officer prior to awards being issued. 
3. Elements of a Program: Each program needs to include the following elements:
   1. Purpose
   2. Size of the program (i.e. monetary amount of awards, total amount of scholarship fund, dates of awards, etc.)
   3. Publicity (how students will learn of availability)
   4. Eligibility requirements (may include geographic region, specific field of study, academic performance, demonstrated leadership, financial need, etc.)
   5. Application procedure
   6. Selection criteria
   7. Person authorized to approve awards
   8. Use of award (i.e. tuition, fees, books, supplies, etc.)
4. Making the award: The School or Service Center is responsible for notifying students of the award, including information about use of the award and related tax issues (prepared by the Finance Office.)
5. Award Payments: 
   1. Active Students: Awards for active students are made by the Financial Aid Office in accordance with the policy “Scholarships, Fellowships and Research Grants for Active Graduate Students”.  If a student has a past due tuition balance at the time of the award, the award will be applied to that outstanding balance. See the policy “Awards for Active Students” for further information.
   2. Alumni or Postgraduate Programs: Awards for alumni are made by the Accounts Payable office. These awards must be reported as taxable income on a 1099 and will require a W-9 from the recipient.
6. Donor Relations: The Development Office is the primary contact with donors and coordinates communication about scholarship awards between donors and Schools.

• Scholarships, Fellowships, Grants: Award Payments
   
   

Policy Approved 07/05/2005

Date Approved:             August 19, 2008

Approved by:                President