Policy 5.03

Part 1. Purpose

To ensure the integrity and administration of the College's financial records.

Part 2. Definitions

Chart of Accounts: the organization of the College or system’s financial structure within its Enterprise Resource Planning (ERP) system.

Delegation of Authority:  As defined in Minnesota State System Procedure 1A.2.2 Delegation of Authority.

Responsibility Manager OR Cost Center Manager: College employee with designated authority to spend and oversee all fiscal matters related to assigned cost centers. 

Part 3. Responsibility

The President, in consultation with the President's Council, is responsible for overall financial management in conformance with College and Minnesota State system office policies and procedures.

The Vice President of Finance and Operations is responsible for ensuring the general ledgers of the College are accurately maintained. Each cost center is assigned a cost center manager in accordance with the College's organizational chart and/or business needs). Cost center managers require a Delegation of Authority and assume responsibility for all financial transactions related to their respective cost center(s).

The President's Council is responsible for timely follow-up related to concerns raised regarding cost center management.

Part 4. Accounts Standards

College processes and procedures will assure that:

• Financial records are complete and safeguarded.
• Financial information is accurate, reliable and useful for management reporting.
• Financial management methods support short-term and long-term System and College strategic objectives.

To achieve the above, the College requires:

•  Financial reports and training related to budget monitoring to be made available to cost center managers
• Regular data integrity checks to be performed by the Business Office and cost center managers
• An annual review of cost centers by managers
• Adherence to end-of-year financial calendar and institutional accounting procedures.

Owner(s) Title: Vice President of Finance and Operations

Date of Adoption: 12/27/2005

Date of Implementation (if different from adoption date): Changes approved on 7/22/2021 will be implemented with the approval of the full revisions of the College’s finance policies section in May 2025.

Date Last Reviewed: 5/1/2025 (Limited)

History and Subject of Revisions: 5/1/2025 (Limited Review), 7/22/2021 (Comprehensive review associated with revisions to all finance policies. Added Purpose and Definition sections. Added some responsibility details including delegation of authority rules. Added an Accounts Standards section that was formerly the policy statement.) 1/9/1019 (minor changes including the renaming of groups and individual titles/roles and clarity edits), 12/27/2005 (Adopted)

Regulatory Authority (e.g. Minnesota State policy, federal or state law): Minnesota State Board Policy 7.3 Financial Administration