Guide Sheet #4
The county director is responsible for assuring that all funds are handled according to policies and procedures established by The Ohio State University and Ohio State University Extension. Appropriated funds are received from federal, state or county governments. Non-appropriated funds come from non-governmental sources. Terms you may hear in connection with appropriated funds are: state and county appropriations, Smith Lever, 3b/c, 3d or names of programs like EFNEP (Expanded Food & Nutrition Program), County Commissioner funds or IPM (Integrated Pest Management). There are no compromises when handling public money. The OSU Extension Business Office web site is an important tool in understanding the guidelines and procedures to be used. The OSU Extension web site and the OSU web site provide the most current information on policies and procedures.
Budget Development Process
Use past expenditure information as a baseline on which to build a County Extension budget. By statute, the budget request must be submitted to county commissioners by June 1. Seek input from agents and the County Extension Advisory Committee. Human Resources will provide information on county cost share for agents and anticipated benefit costs in the spring of each year. Each county has its own process for developing, submitting and presenting the budget to commissioners. Become aware of the “traditions”, but ask other directors and the district director for ideas. Involve County Extension Advisory Committee members in the process of requesting funds from commissioners and help them feel responsible for obtaining adequate funding for the local Extension office.
Carryover
A frequently asked question is how much carryover in appropriated funds is needed from year to year. A carryover of 33% or the equivalent of three to four months operating funds is a good target. Often county allocations are made in January, but funds may not be deposited until March or April. The carryover provides funds to operate until new monies from commissioners are received. The director must be able to justify carryover. Please keep in mind that some counties require signed contracts stating that any unused funds must be returned at the end of the contract period. Carryover information will be shared with commissioners or auditors upon request.
Expenditures of Funds Allocated to Extension by a County
Funds appropriated to a county from the county commissioners or county levy funds can be expended only with the approval of the county director. All funds allocated by county commissioners must be used in support of the local county office. Some counties provide in-kind support for Extension in the form of telephone lines, space in county buildings, or direct payment of utilities. In other counties, monies are allocated in the Extension budget to cover these expenses.
University Accounting System
All funds that are appropriated by county commissioners are processed through the OSU accounting system. PeopleSoft is an automated accounting system for processing financial and payroll transactions. Financial reports are available through the web as eReports. County funds are sent directly by check from the county auditor to OSU according to a billing schedule submitted by the county director. Directors must complete a “County Appropriation Authorization” form to the Business Office each year with the amount to be billed and dates for billing. This is due at January 1st each year. County Directors need to understand and review the financial reports regularly. This is the official record of the finances for OSU funds. Consult the OSU Extension Business Office web site for information to help understand the financial reports. Arrange for further assistance as needed with the regional director or a director mentor. Financial reports should be reconciled to supporting documentation (e.g., invoice, travel expense report, etc.), this reconciliation must be signed each month.
Payroll
There are two payroll categories: salaried and wage (hourly). There are five employment categories: Faculty; Senior Administrative and Professional (SAP); Administrative and Professional (A&P); Classified Civil Service (CCS), and Wages. Salaried employees receive payment on the last working day of each month. Hourly employees are paid every two weeks (on Friday); however, payments are always two weeks in arrears. Guidelines for vacation, sick leave and holiday pay vary by employment categories and full or part-time worker status. These policies and accrual rates can be found at http://extensionhr.osu.edu/payroll/payroll_charts.html.
Complete information on benefits eligibility can be found at the OSU Human Resources Benefits web page. Benefits rates are charged to the fund from which payroll is paid, using a “pooled” rate based on employment category of CCS, A&P, or Faculty. Those rates generally change slightly each year.
Travel
University guidelines on travel are available at the OSU Business Office – Travel web page. Meal allowances are based on federal per diem rates for specific locations. Mileage reimbursement rates are also based on federal guidelines. Prepayment of registration fees and airline reservations are permitted if purchased from one of the University’s designated travel agencies. Generally, meals and lodging cannot be prepaid and meals can be reimbursed only when overnight travel is involved. Pre-approval of all travel with non mileage related expenses is required. Personal phone calls are not reimbursed unless the traveler is on travel status more than one calendar week. Business phone calls are reimbursable. Pre-approval of out-of-state travel is required. More information can be found on the OSU Extension Business Office travel web page.
Contracts
The Board of Trustees has designated signature authority for all agreements and contracts to the Vice President for Business and Administration. Contact the Extension Business Office for guidance on signing authority. Do not place yourself in legal jeopardy by signing contracts.
Fiscal Years
County budgets are based on a January – December fiscal year. State budgets are allocated on a July – June fiscal year. The State of Ohio has a two-year budget cycle. Federal funds and the Human Resources for the University are based on an October – September fiscal year. The University accounting system operates on a July – June fiscal year. This can account for difficulty in analyzing financial statements. OSU financial reports are based on a state fiscal year.
2001 Revisions: Linda Johnson, Leader, Business Office
2005 Revisions: Cynthia Tschanen, Brian McClain
2008 Revisions: Cynthia Buxton, Dr. Garee W. Earnest