The Catholic University of America

Responsibilities of the VP for Finance and Treasurer

The Treasurer is responsible for the administration and accounting for all financial transactions including completion of accounting reports.

Federal Laws

The Anti-Kickback Act of 1986
Prohibits any payment or gratuity made for the purpose of inducing award of a subcontract or prime contract with the federal government. The Treasurer is responsible for reviewing any reports filed by employees on gifts received, in accord with the Gifts from Contractors/Vendors Policy and is the responsible official for oversight of /compliance with the CUA Gifts from Contractors/Vendors Policy.

Use of Bond Financed Facilities

The IRS will look at the type of bond issued for the university's benefit, and whether the funds are being used for exempt purpose or private activity. The general rule is that if a bond financed facility is used by an exempt organization for purposes not related to its exempt purpose, the use is treated as impermissible private use. If the use were to be found to be a private use, the bonds used to finance the facility might become taxable. The Treasurer retains responsibility for overall compliance with tax law and university policy on use of bond financed facilities. This includes retaining records on the amount and use of equity contributions to a project; records on expenditures of bond proceeds, investments of bond proceeds, when the assets were placed in service and remaining useful lives and rebates until 3 years after the bonds (or the bonds refunding such bonds) have been retired (this includes use of Facilities that have been refunded); records that calculate the amount of Private Use that will be permitted in each Facility, beginning at the time the bonds are issued; and records that update the amount of Private Use of each Facility annually.

Foreign Bank Accounts and Tax Filings

US institutions and citizens that have an ownership interest in foreign bank accounts, or US citizens with signature authority over a foreign bank account have to file form TD F 90.22-1 (FBAR). The latter must report the account on an FBAR even if the foreign financial account is reported on an FBAR filed by the owner of the account (or other person that has a financial interest in the account).


Employee Retirement and Income Security Act
ERISA establishes standards of conduct, responsibility and obligations for fiduciaries of employee benefit plans. This includes various health benefits, disability benefits, unemployment compensation benefits, retirement plans and income deferral programs. The law also limits the remedies available to workers. A person in an employer-sponsored health care plan may recover the benefits and obtain an injunction clarifying the right to future benefits, but the law does not allow compensation for lost wages, death or disability, pain and suffering, or emotional distress.

The Treasurer holds the overall responsibility for compliance with the fiduciary responsibility of ERISA.

See also Retirement and Other Deferred Compensation Arrangements. The Treasurer has overall responsiblity for ensuring that retirement plans are in accord with the law and properly implemented.

Form 990 and Public Disclosure Requirements
Form 990 is an annual information return required to be filed with the IRS by most organizations exempt from income tax under IRC section 501(a). The Taxpayer Bill of Rights requires public disclosure of certain tax documents filed by tax-exempt organizations. In addition, the Pension Protection Act of 2006 requires the public disclosure of Form 990-T by 501(c)(3) organizations. Form 990-T is used to report unrelated business income tax.

The Treasurer is responsible for ensuring that the Form 990 is open for public inspection upon request as specified on the above linked web page.

Truth in Lending Act (Regulation Z)

15 U.S.C. § 1601 et seq.; 12 C.F.R. § 226.1 et seq.

Requires disclosures for loans and credit plans, but exempts Perkins Loans and Federal Family Education Loans. Loans made, insured or guaranteed pursuant to programs authorized by Title IV are exempt. See 12 C.F.R. § 226.3(f). In terms of loans made to employees, the university would only meet the definition of creditor under the law if the school is:

A person (A) who regularly extends consumer credit 3 that is subject to a finance charge or is payable by written agreement in more than four installments (not including a down payment), and (B) to whom the obligation is initially payable, either on the face of the note or contract, or by agreement when there is no note or contract.

Note that the footnote 3 states as follows: 3 A person regularly extends consumer credit only if it extended credit (other than credit subject to the requirements of § 226.32) more than 25 times (or more than five times for transactions secured by a dwelling) in the preceding calendar year. If a person did not meet these numerical standards in the preceding calendar year, the numerical standards shall be applied to the current calendar year. A person regularly extends consumer credit if, in any 12-month period, the person originates more than one credit extension that is subject to the requirements of § 226.32 or one or more such credit extensions through a mortgage broker.

There is thus a threshold question of whether or not the volume of loans to employees is such that it meets the more than 25 times in the prior calendar year limit. In addition, to come under the terms of the act, the following four conditions need to be met: 1) In general, this regulation applies to each individual or business that offers or extends credit when four conditions are met: (i) the credit is offered or extended to consumers; (ii) the offering or extension of credit is done regularly; 1 (iii) the credit is subject to a finance charge or is payable by a written agreement in more than 4 installments; and (iv) the credit is primarily for personal, family, or household purposes. 12 CFR § 226.1 (c)

If the school determines that Regulation Z applies, then the school must comply with the disclosure requirements of the law. There must be a disclosure statement given to the consumer, and the terms "annual percentage rate" and "finance charge" must be more conspicuously displayed than other terms. 12 CFR § 226.18 lists the specific disclosures that must be made. This includes the creditor's identity, the amount financed, an itemization of the amount financed, the finance charge, the annual percentage rate, the variable rate, if any, the payment schedule, the total of payments, as well as other information, including any late payment requirements.

The Vice President for Finance & Treasurer has oversight for this law for any loans that fall under his area of operations.

The Credit Card Accountability, Responsibility and Disclosure Act of 2009

Amends the Truth in Lending Act to require institutions of higher education to publicly disclose any contract or other agreement made with a card issuer or creditor for purposes of marketing a credit card, prohibits card issuers or creditors from offering certain inducements to college students to apply for credit cards, and includes a statement of the sense of the Congress regarding college and university policies relating to credit cards. See Section 304. Signed by the President on May 22, 2009 and effective nine months later, so Feb. 22, 2010. See White House Press Release for summary of the law.

The Vice President for Finance & Treasurer is responsible for ensuring that any contract with a credit card issuer for purpose of marketing a credit card is publicly disclosed. In addition, the Vice President for Finance & Treasurer must ensure that no tangible inducements are offered on or near the campus to students to apply for an open ended consumer credit plan.

Federal Laws

Disclosure Requirements on Foreign Source Interests

By January and July 31 of each year, a postsecondary institution must file a disclosure report about ownership or control by, or contracts with or gifts from foreign sources. The institution must make the disclosure by January 31 for the prior year July 1 to December 31, and by July 31 for the immediately preceding Jan. 1 to June 30 period.

Gifts and contracts of $250,000 or more (individual or in combination with other gifts from and/or contracts with the same foreign source) received or contracted within a calendar year must be reported to the Department of Education. This report must also be made available to the public during regular business hours (20 U.S.C. §1011f(e)). This disclosure report should contain the dollar amount of gifts received from and/or contracts entered into with a foreign source other than a foreign government, the amount of gifts received from or contracts entered into with a foreign government, and if the U.S. institution is owned or controlled by a foreign source, the identity of the foreign source, the date the foreign source gained ownership or control, and institutional program or structural changes that took place as a result of the change in ownership or control. If a restricted or conditional gift and/or contract is received by an institution, the following must also be disclosed: 1) the amount, date, and description of the conditions and restrictions for gifts received from and/or contracts entered into with a foreign source (other than a foreign government) as well as country of citizenship and country of incorporation; and 2) the amount, date, description of conditions and restrictions, name of foreign governments for gifts received from and/or contracts entered into with a foreign government.

A foreign source is a foreign government, including an agency of a foreign government, a legal entity created solely under the law of a foreign state or states; an individual who is not a citizen or national of the US; and an agent acting on or behalf of a foreign source.

It is the responsiblity of the Vice President for Finance & Treasurer to report any contracts from a foreign source to the Treasurer's Office..

Resources

Federal Student Aid Handbook for 2008-2009 Award Year Volume 2, Chapter 3 starting at page 39.

Policies with Vice President for Finance as Responsible Official

Finance Policies:

Investment

Endowment Spending

Debt

Treasurer's Scope of Responsibilities

Financial Transaction Authority

Fraud and Financial Irregularities Policy

Contract Policy

Prohibited Transaction Policy

Emergency Procedure Policy

Employee Loan Policy

Conflict of Interest Policy

Travel Policy

Independent Contractor Policy

Non-Resident Alien Payments Policy

Relocation Expense Policy

System Access Policy

Property Administration Policy

Honoraria

Risk Management Policy

Budget Policies:

University Budget Policy

Overhead Requirement Policy

Cost Sharing Policy

Accounting Policies:

Capitalization and Depreciation Policy

Petty Cash Policy

Tax Compliance Policy

Grants and Contracts Policy

Salary Advances Policy

Special Check Policy

Unclaimed Payroll Check Policy

Credit Card Acceptance Policy

University Supplied Housing

Cash Handling Policy

Allowance Policy

Revenue Recognition Policy

Classification of Net Assets Policy

Payroll Deduction Policy

Allocation Policy

Service Center Policy

Tuition Policy

Tuition Discount Policy

External Audit

Departmental Parking Payments

Officer Compensation

Purchasing Policies:

Gifts from Contractors/Vendors Policy

Procurement Policy

Procurement Card Policy

Unauthorized Purchases

Private Use of University Facilities