Financial Stewardship Policy and Practice

Financial Stewardship Policy and Practice – Fueling the Mission

Good financial stewardship is a shared responsibility:

Business Office

• Monthly departmental budget statements
• Weekly Virtual Office Hours
• Functional tools in Workday:
  • Create Supplier Request (for both procurement and non-procurement new suppliers)
  • 3-Way Match (for procurement items: create requisition and create receipt)
  • Create Supplier Invoice Request (for non-procurement payment requests)
  • View Supplier Records (to check the payment status of invoices)
  • Create Spend Authorization (to request a cash advance)
  • Create Expense Reports (for employee reimbursements)
  • Create Expense Report for Non-Colleague (for candidate reimbursements)
  • Create Customer and Create Customer Invoice (to record receivables)
  • Create Request (for budget transfers, journal requests, loading departmental Berg Bucks, and requesting a new PCard)

Budget managers

• Regularly monitor budget performance against actual results and make adjustments as circumstances or priorities change.
• Review your cost center’s financial history, identify trends, and look for opportunities to reduce spending.
• Use Workday reports to help manage your budget, such as the MUH Budget vs. Actuals report and the Gift Activity report. (Contact Business Office for instructions.)

Muhlenberg community members at large

• Prevent fraud, waste, and abuse by following Business Office policies and procedures.
• Ensure financial decisions, including budgeting and resource allocation, align with the college’s strategic priorities. When in doubt, consult with the VP in your area.
• Remember that small actions add up: turn off lights, unplug docking stations, and consider whether printing is necessary or if electronic distribution will work.
• Regularly review programs and work procedures, eliminate inefficiencies, and confirm that programs directly support Muhlenberg’s mission.
• Properly protect and maintain physical assets (buildings, equipment) to extend their lifespan and reduce emergency repairs.
• Stay engaged: learn what other divisions are doing, integrate best practices, and look for opportunities to collaborate and share costs on complementary programs.

Financial Management Expectations

Cost center managers are responsible for their cost center budgets.

• Spend thoughtfully: If you have a special project or need, consult with the VP in your area. Cost Center managers may not spend more than their budget allotment.
• Use Workday reports to help manage your budget, such as the MUH Budget vs. Actuals report and the Gift Activity report.

Plan Ahead

• Anticipate departmental needs whenever possible so there is time for bidding, approvals, and processing.
• Use funding sources in the proper order. The most restricted funding source should be used first to reduce pressure on the operating budget. Speak with the interim CFO or the appropriate member of the Business Office staff if you have questions about whether there are funds available to support budget-relieving activities. Since these funds are regularly replenished, our priority is to spend down all of these funds on as many budget-relieving activities as we can. If you take only one thing away from this policy it’s this!

Procurement Expectations

Submit Clear Requisitions

• Ensure requisitions are complete and accurate to reduce processing time.
• If you are unsure what information is required, contact the Director of Business Services before submitting.

Avoid Unauthorized Commitments

• Become familiar with Muhlenberg College procurement policies and follow them.
• Do not make verbal or written commitments without proper authorization, especially when the commitment conflicts with Muhlenberg College policy.
  • Example: Muhlenberg payment terms are Net 30. This means that the Business Office will pay a bill within 30 days of receipt of that bill. We cannot promise quicker payment. If a vendor requires different terms, work with the Controller on remediation.
  • Example: Muhlenberg will not sign any contracts with auto-renewal clauses. If a vendor claims they require it, speak first to the VP in your area. If you need further guidance, consult the interim CFO.

Maintain Confidentiality

• Pricing and supplier information must be handled discreetly.

Communicate with Vendors/Suppliers

• Departments are responsible for resolving order discrepancies directly with suppliers.

Muhlenberg College Procurement Policies Summary

Sales Tax Exemption

• Muhlenberg is exempt from sales tax in PA, NJ, and NY (excluding hotel taxes). Ensure vendors are notified at the time of purchase. The college’s sales tax certificate is located here.

Special Purchase Considerations

• Furniture: must be ordered through the Director of Business Services.
• Technology: all technology purchases must go through the Office of Information Technology (OIT).
• Alcohol: may be purchased only through Dining Services with prior event approval.
• Personal purchases: employees may use vendor discounts but must pay applicable sales tax.

Travel and Entertainment Spend

• The approval process and detailed Travel and Expense policies are available on BergConnect. To maximize College rebates, business travel and entertainment should be booked through approved channels. All travel should be booked through the Preferred Vendors listed on BergConnect.

Cash Advances

• Employees issued a cash advance for travel must reconcile expenses with itemized receipts. IF this is not done, the advance will be treated as personal income and reported on a 1099-MISC at year-end.

Receipts must include:

• Date of purchase
• Business reason
• Store name
• Location of purchase
• Itemized list of items purchased and individuals present
• Total amount paid

Employee Expense Reimbursement

• If you use a personal credit card or cash for travel, please refer to this document for instructions, and we will ensure that you are reimbursed within 30 days of receipt submission.

General Procurement Spend

Use the following procurement channels, in order. If you cannot procure goods or services through these channels, contact the Business Office for guidance.

1. Catalog: look for products in the preferred vendors catalog (insert link).
2. Purchase Orders (POs): required for all purchases greater than or equal to $1,000.
   • All purchases must follow the requisition → approval → PO issuance process in Workday.
   • Budget holders (department heads, grant PIs, etc.) are responsible for initiating requisitions.
   • Requests must route through the appropriate approval chain in Workday.
   • Note: if you are using a government grant, you must follow Uniform Guidance issued by the Office of Management and Budget.
3. P-card: for purchases under $1,000.
   • Follow the P-card Manual.
   • P-card holders are responsible for timely reconciliation.
   • Prohibited uses include: equipment, technology, alcohol, gift cards, contracts, or personal items.
   • Noncompliance will result in the employee being required to reimburse the college for unallowable charges.

Contracts and Competitive Bidding

Competitive bidding is preferred because it helps ensure the college receives fair-market pricing. Extenuating or emergency situations may exempt a purchase from bidding, but employees must follow the Purchasing Policies and Procedures Manual and coordinate with Purchasing to gather bids when required.

Competitive quotes should be attached to the purchase request in Workday for review and approval. Orders greater than $25,000 require a request for proposal (RFP) must be competitively bid to at least three vendors.

Competitive bidding is not required when one or more of the following conditions exist:

• An urgent/emergent need will not permit a delay for competitive solicitation.
• After solicitation from multiple sources, competition is deemed inadequate.
• Bids were received within the last three months for the same items and remain valid.
• Items have already been bid through E&I Cooperative, LVAIC Purchasing Consortium, Pennsylvania state contracts, or other purchasing cooperatives.
• A sole-source distributor or manufacturer is required. In this case, the requester must provide written justification, including:
  • Evidence the vendor is the only provider of the good/service, and
  • Evidence the vendor offers unique knowledge, experience, or technical capabilities, or
  • The item has been identified as a College standard.
  • Please find more information here.

Contract Best Practices

Term and Renewal

• Contracts should generally be for a one-year term.
• Multi-year contracts are discouraged unless the longer term produces cost savings greater than 20% of the first year’s expense.
• Muhlenberg College does not approve contracts containing automatic renewal clauses. Contracts must be reviewed and re-approved prior to renewal.

Termination

Whenever possible, include a termination for convenience clause allowing Muhlenberg to exit with reasonable notice (e.g., 30, 60, or 90 days) without penalty.

Performance Metrics

• Include clear Key Performance Indicators ( KPIs) and/or Service Level Agreements aka deliverables ( SLAs) aligned with College requirements.

Confidentiality and Data Security

• Include appropriate clauses protecting confidential College information and complying with applicable data security and privacy regulations.

Governing Law

• Specify the laws of the Commonwealth of Pennsylvania.

Appendix: Common Financial Terms (Optional)

Tuition
The primary fee charged for instruction or academic enrollment (typically excludes housing, meals, books, and fees).

Net Tuition
Tuition paid after subtracting grants, scholarships, or fellowship aid.

Room and Board
Combined charge for housing and meals for students living on campus.

Discount Rate
Total institutional grant and scholarship aid divided by total published tuition and fee revenue (i.e., the percent of published tuition returned to students as grants/scholarships).

Funded (Endowed) Scholarship
A scholarship paid from investment earnings of a donor-established endowment; the principal remains invested.

Unfunded (Operating) Scholarship
A scholarship paid from the college’s operating budget/general revenue; these contribute materially to the tuition discount rate.

Grants vs. Loans and the Discount Rate

• Grants/scholarships: gift aid; increase the discount rate.
• Loans: must be repaid; do not affect the discount rate.

Common grants for Pennsylvania students may include:

• Federal grants (e.g., Pell Grant)
• State grants (e.g., PA State Grant Program)
• Institutional grants (College-funded; some funded/endowed, many unfunded/operating)

For questions on the information above, please contact Andrea Gillespie, director of accounting services, at [email protected].