EOP Audit Guidance > SUNY NY-ALERT Launch > Student Government Guidance

Audit Guidance for Student Government Associations
June 13, 2008

To help ensure Student Government Associations (SGA) are in compliance with the Mandatory Student Activity Fees Policy and Student Activity Fee Programs - Mandatory, Fiscal and Accounting Procedures (SUNY Guidelines) and to assist in strengthening certification processes, internal controls, and asset management, we offer the following audit guidance. This audit guidance should be considered in conjunction with the SUNY Guidelines.

Written Policies and Procedures

• The SGA should have an up-to-date comprehensive policies and procedures manual.  The manual should specifically address the budget certification process, budget changes, procurement and disbursements, a system of bidding and quotes for purchases over a specified dollar amount, travel reimbursement requirements, cash receipt controls, inventory management, and governance requirements.  (Required)
• The Campus President or designee should review the policies and procedures of the SGA as well as SUNY Guidelines with the Executive Officers of the SGA on an annual basis to ensure proper understanding of the internal control procedures and requirements enumerated in the SUNY Guidelines. (Required)

Budget Process

• The SGA should require that all clubs and organizations utilize a standardized budget request form.  Without the use of a standardized budget request form, it is difficult to determine if all clubs have submitted a budget and the intended use of budget allocations. (Best Practice)
• SGA officers should submit budget request forms for administrative or program accounts under their control.  The SGA officers' participation in the budget process will promote accountability and ensure that the student body has comprehensive information on the designation and projected use of all funds. (Best Practice)
• As part of the annual budget process, the SGA should justify and document changes to budget requests and incorporate this information into the final budget package.  These changes should be formally communicated to the affected clubs and the student body. (Best Practice)
• The annual budget may need to be amended to account for unanticipated changes.  Any adjustments to the budget should be documented and there should be a process for approving any changes.  Without a process to amend the budget, there is an increase risk that the expenditure plan is not viable and some accounts may be overspent. (Best Practice)
• The Campus President or designee should formally approve the final budget and certify that the SGA operating budget allocations are in compliance with the SUNY Guidelines. (Required)
• Budget certifications, independent audit reports, and management letters should be submitted to the Chancellor or designee as required by the SUNY Guidelines. (Required)

Encumbrance Approval System

• Each disbursement should be approved by a responsible club officer, the treasurer of the student government or designee, and the Campus President or designee to ensure compliance with the SUNY Guidelines and the availability of funds. (Required)
• Purchase requisitions should be used to document the individuals initiating and authorizing purchases and the availability of funds.  Without purchase requisitions there is an increased risk of unapproved and inappropriate purchases. (Best Practice)
• Purchase orders should also be used to control expenditures.  Purchase order forms should be sequentially numbered, adequately controlled by the SGA, and issued based on an approved purchase requisition.  As purchase orders are issued, the appropriate account should be encumbered.  This can help ensure individual accounts and the budget is not overspent. (Best Practice)

Disbursements

• A receiving process should be established to document the receipt of goods prior to payment. (Required)
• Disbursement should only be processed upon review of an invoice and/or receipt and not from handwritten letters or statements. (Best Practice)
• Disbursement transactions should include a stated business purpose on supporting documentation. (Best Practice)
• Specimen signatures should be maintained for each individual authorized to sign vouchers and checks.  These signatures should be verified to ensure vouchers are approved by an authorized individual. (Required)

Compliance with Guidelines

• The Campus-based fiscal agent contract should be approved by the Campus President or designee, provide for the business needs of the SGA, and contain provisions for adequate internal control mechanisms, insurance coverage (fidelity bond), custodial/disbursing functions, and accounting and reporting procedures. (Required)
• The SGA should request proposals from multiple CPA firms every three years as required by the SUNY Guidelines and sign a formal contract with the CPA firm to conduct the annual audit.  Formal bidding procedures as outlined in the SGA manual should be followed. (Required)
• A comprehensive corrective action plan addressing the external auditor's internal control recommendations should be submitted in writing to the Campus President and designee. (Required)
• The insurance policies of the SGA should include SUNY and New York State as additional insured as required by the SUNY Guidelines. (Required)

Oversight

• The Campus should include the SGA as an assessable unit within its internal control program.  (Best Practice)
• The Campus should ensure there is proper and effective Campus support (advisement and services) for the SGA.  A responsible Campus official should be present at all board meetings and available to advise students on various matters. (Required)

Sources for Additional Information

Mandatory Student Activity Fees Policy

Student Activity Fee Programs - Mandatory, Fiscal and Accounting Procedures

For additional information, please contact the Office of the University Auditor at 518-443-5533 or University.Audit@sysadm.suny.edu .