Finance

Requirements to Reduce Potential Risks

The following is a list of requirements for Administrative Officials to reduce potential risks.
Approving Authority
  • Employees signing any document as the approving authority must sign their own name or use their own electronic signature or user ID (e.g. KFS approval) where appropriate.
  • Staff must be adequately trained to ensure transactions are appropriate, accurate and in compliance with relevant policies, regulations, laws, funding source restrictions, and contractual terms & conditions. Only certain UCD staff are authorized to execute business contracts and agreements with outside entities. Any Administrative Official contemplating a business arrangement with an outside entity should contact the appropriate office (see Resources list) for consultation and support.
Cash
  • A bank account for either an activity supported by or for funds disbursed by the university is not to be opened without prior approval by the Treasurer’s Office. Approval must be coordinated with the Associate Vice Chancellor - Finance (see Resources).
  • Cash and checks received for the university must be endorsed and deposited in accordance with the UCD PPM Sections 330-55.
Contracts and standard purchases
  • The Director of Materiel Management and designee have the highest delegation for the execution of purchase contracts and standard purchase orders for materials, goods and services, and the execution of contracts for lease or lease/purchase of equipment. No university staff or faculty member may commit university funds without specific delegation of purchase authority granted from policy, the Vice Chancellor of Administrative Resource Management or the Director of Materiel Management.
Equipment
  • Complete records of equipment, as addressed in the UCD PPM Section 350-55, must be kept in the department. University-owned equipment used in homes or other locations remains the property of the University of California and must be returned when no longer used for university business. University equipment can only be given to vendors if it is documented on the Purchase Requisition, indicating that the university will be compensated for the equipment. For instance, a department may want a vendor delivering a new copier to take the old copier away.
Gifts
Income and Expenditures
  • Expense reimbursements and payments must follow special limits and approvals as outlined in the appropriate section of the UC Davis Policy and Procedure Manual.
  • Income and expenses recorded in departmental financial subsystems must be reconciled to the general ledger in Decision Support (the official record for UC Davis financial transactions) on a monthly basis.
  • Expenditure adjustments (cost transfers) must be made in accordance with UCD PPM Section 330-63, which permits expenditure adjustments only to correct errors, record a change in decisions originally made in the use of goods or services, or redistribute certain high numerical but small individual and/or minor charges.
  • The establishment of a new service activity and new or revised recharge rates must be approved as outlined in the UC Davis PPM Sections 340-25.
  • The funds of the university cannot be used for personal gain. This includes the purchase of products for personal use or the purchase of products or services from oneself, a relative, or other department employee or their relatives, unless allowed under the provision of the conflict of interest policy.
  • The university cannot make charitable or political contributions. The Chancellor may grant an exception if charitable contributions are consistent with the mission of the university.
Payroll
  • Employees should not approve payroll or other disbursements to themselves or someone to whom they report. Administrative Officials have the responsibility to ensure a system of separation of duties in which this does not occur.
  • All payments to or for the benefit of UC Davis employees must be made in accordance with the UCD PPM and compensation plans.
  • The payment of compensation or expense reimbursement to foreign visitors is restricted in many situations by Immigration and Naturalization Services (INS) regulations. Contact the Payroll Division of Accounting & Financial Services for help before a visitor arrives at UC Davis.
  • All loans to UC Davis employees must be in accordance with approved university loan programs.
  • It is illegal to pay individuals as independent contractors or consultants when they should be paid as employees, and doing so renders the department liable to pay required taxes and/or penalties as outlined in UCD PPM Section 380-70.
Risk Management
  • Risk Management Services is to be consulted in decisions involving potential liability, accidental loss, insurance and indemnification requirements and litigation issues. Claims for loss of or damage to property are submitted to Risk Management Services as they are incurred.

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