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SOFS

Procedures and Policies

A. Treasurer's General Responsibility


After assuming office, the treasurer of each student organization should report to Student Involvement to complete an Annual Review Form (ARF). SOFS uses the ARF as a signature card that authorizes the treasurer, president, and adviser to sign for the organization's account.

It is the personal responsibility of the organization's treasurer to account to the SOFS office for all funds of the organization and fiscal records related to the organization's activities. The treasurer must maintain a detailed account of all business activities. These records should be retained by the organization for a period of seven years.


B. University of Nebraska-Lincoln Bylaws (Section 4.3.2)


The Vice Chancellor for Student Affairs shall designate a person to receive and act as custodian of all monies collected by or paid to such student organizations as are designated by the Chancellor. The Vice Chancellor for Student Affairs in cooperation with the Vice Chancellor for Business and Finance shall issue appropriate rules and regulations to ensure the proper accountability of such funds and shall have the authority to audit or have audited these funds. All recognized UNL student organizations are required to deposit all their funds with SOFS.


C. Disbursement Fee (Service Charge)


At the end of each month an assessment is made against the accounts of all organizations. This assessment is made by authority of the University and is used by SOFS to help fund its services. The assessment is a fixed activity charge of $0.10 per check or disbursement from the account. The assessment will be noted on the organization's monthly statement.


D. Statement of Account


At the end of each month a statement of the student organization's account activity is sent to the organization officers. This statement will show each disbursement from and receipt to the account during the current fiscal year. Any service charges against the account will be indicated on the statement.

It is the responsibility of the treasurer to reconcile the monthly statement with the organization's records as soon as possible after the receipt of statement. If a treasurer has difficulty reconciling a balance, they should not hesitate to contact the SOFS office. It is not too difficult to retrace a month's activity, but it gets more difficult to reconcile or reconstruct several months' activity if the treasurer has not reconciled monthly.


E. Annual Account Balance Confirmation


According to University policy, student organizations are required to turn in their books to SOFS for an annual audit at the end of the academic year. To make it easy and convenient to meet this audit requirement, SOFS will send to the treasurer an Annual Account Balance Confirmation form. This confirmation form will list the organization's June 30th account balance according to SOFS records. If the treasurer's records match the SOFS balance, the adviser and treasurer will sign the confirmation and return it to the SOFS office. If there is a discrepancy, the treasurer can contact SOFS in person or by phone to reconcile the difference. Signed confirmations must be returned to SOFS by August 31st. An organization's financial transactions occurring after August 31 will not be processed until the confirmation is returned.


F. Debt Policy for Recognized Student Organizations


Serving as an officer of a student organization can be an important educational experience for a student. The management of the organization's financial resources is an important part of this educational experience. In recognition of this, the Debt Policy for Recognized Student Organizations is designed to allow for the learning experience and to assist in that process by providing concrete, predictable consequences and rewards for actions taken.

In order to help student organizations clear negative balances and prevent large debts from occuring, SOFS has established an Agreement to Eliminate Negative Account Balance Form. If an organization has a negative balance according to SOFS records, then the treasurer will be sent this form, which includes the negative balance and a line for an approximate date by which the organization expects to clear the debt. It will be up to the organization, working in conjunction with SOFS staff, to determine and appropriate deadline for the debt to be cleared. The advisor and treasurer will sign the completed form and return it to SOFS.

SOFS will not make any disbursements from an account with a negative balance. If a Recognized Student Organization has outstanding bills that must be paid, a debt reduction plan must also be provided to SOFS and approved before any disbursements will be made from the account. This plan must include a timeline (not to exceed one calendar year), list of fund-raising activities and estimated deposits that will be made from these activities. This plan must be signed by the advisor and treasurer and approved by the Union Assistant Director for Administration.

If the organization does not clear the debt by the mutually agreed upon date, services provided by the University to recognize student organizations, including facility reservations and access to University resources, will be suspended until the debt is cleared.


G. Possible Audit Procedures


The annual balance confirmation process does not eliminate the possibility of organizations' account records being reviewed and audited by the University at any time. It is required that, upon notification, organizations shall submit to the SOFS office all records, including record books, deposit receipts and contracts, for the previous seven years. Should an organization become temporarily inactive, the records should be stored in SOFS, subject to recall by the organization's officers.


H. Voucher Payment of Bills by Check


All expenditures are to be paid by checks drawn against Student Organization Financial Services after presentation of:

  • a voucher
  • an appropriate supporting document (i.e., statement, invoice or receipt, performance contract with W9 income tax form).

If no supporting document is available, the voucher request must provide a detailed description of the expenditure and the reason for not having the required documentation. The voucher request must be signed by the treasurer or president and countersigned by the organization's adviser. If an address is included on the voucher, the SOFS office will mail the check. If the payment is not to be mailed by SOFS but will be picked up instead, the address section of the voucher request should be left blank.

Checks will be available the next business day following the submitted voucher request. When payments are necessary at a specific time or date, as in the case of dance bands, the organization treasurer should arrange to obtain the check from SOFS 48 hours in advance of the date needed. University regulations prohibit making payments in advance of services rendered or prior to receipt of an invoice or billing statement, as in the case of some purchased merchandise.


I. Expenditures


General policies governing expenditures by student organizations from Student Organization Financial Services are determined by the committee specified under Regent's Rules. The policies are based upon sound business practices and general audit requirements.

* Expenditures for the necessary expenses incurred in carrying out the expressed and approved aims and purpose of the organization as set fort in its constitution shall be deemed proper.

* Organizations sponsoring subscription events such as shows, dances, etc., should adjust admission prices so as to avoid deficits or excessive profits.

* According to University purchasing policy, disbursements for the purchase of alcoholic beverages are allowed when their use is for the purpose of research, patient care, food services (cooking), or instruction. Such use must be noted on the payment document (receipt or statement). Specific requirements for alcohol served as part of an event must be observed. Contact SOFS for details.

The SOFS office is authorized to scrutinize all requests for expenditures and to approve or reject vouchers in keeping with above rules or policies, subject to appeal by the organization to the committee specified under Regents' Rules.


J. Cash Boxes


Cash boxes are available and can be checked out by an organization on a short-term basis for special events. A $10 deposit is deducted from the organization's account for each box checked out. Organizations that do not return a box will forfeit the deposit and be charged an additional $10 so that SOFS can replace the cash box. Organizations should present an Event Planning and Registration form when checking out a cash box.


K. Deposits


The treasurer shall deposit all organizational monies to the SOFS office during the regular office hours of 8:00 a.m. - 5:00 p.m., Monday -Friday. The deposit must be presented with a properly completed SOFS deposit form. A copy of the deposit will be given as a receipt when the deposit is made. The organization's treasurer should retain this receipt as a permanent part of the organization's records.

Checks made payable to a student organization should bear the organization name of record. All checks deposited must be endorsed on the back exactly as drawn along with the organization's SOFS account number. Organizations should make every effort to deposit money into their SOFS account within 24 hours of receipt.

Money collected for an event occuring after SOFS operating hours can be vaulted with the Night Manager of the Nebraska City Union or the Nebraska East Union.


L. Tax Filing


Recognized student organizations are not automatically tax-exempt and are not included in the University's tax-exempt status. If student organizations meet specific criteria (some of which are provided below) they are required to obtain their own federal identification number and complete the necessary forms to obtain and maintain tax-exempt status.

  1. Income Tax
    In general, organizations that acquire receipts and revenues of more than $5,000 in any one calendar year are required to file for and maintain tax-exempt status. If an organization receives receipts and revenues of more than $5,000 in any one calendar year the Internal Revenue Service (IRS) requires that the student organization submit Form 990, an annual informational return. The overall responsibility for the items stated above is that of the student organization. Failure to comply with Internal Revenue Service rules and regulations may result in significant fines. The SOFS office maintains the necessary information and forms that are needed to comply with these rules and regulations. Please feel free to contact the SOFS staff for assistance.
  2. Sales Tax
    It is the student organization's responsibility to determine the sales tax liability, if any, related to the amount deposited. The SOFS office will remit this amount to the Nebraska Department of Revenue.
  3. Payroll Tax
    SOFS also provides organizations with payroll services, including completion and filing of federal and state payroll tax forms. If an organization compensates individuals for services the treasurer should inform the SOFS office. Payroll taxes related to this compensation may need to be withheld and other federal and state licensing/reporting requirements may be necessary.

NOTE: There is a general misconception that if an organization is exempt from federal income taxes, it is exempt from other taxes, i.e., state sales taxes. Sales and payroll taxes are not exempted by federal income tax exemptions. Please direct any questions about tax issues to the SOFS office.


M. Additional Services Available to Student Organizations


For Recognized Student Organizations, many of the university's services become available through the organization's SOFS account. Most of the time, these services can be provided at a lower cost to the organization than if they were contracted to off-campus services. These services include:

  • Audio-video library and services: films, slide projectors, VCRs, movie projectors and operators, and video tape language translation program.
  • Data processing and computing center: mailing lists, labels, vote tabulations, IBM cards.
  • Mailing distribution, freight and package receipt and delivery: quantity mailing of properly prepared mail through the University meter.
  • Photographic productions: special events, portraits, group pictures, prints, supplies in quantity, art services, posters.
  • Printing services: letters, envelopes, stationery, pamphlets, invitations, membership cards, award certificates, brochures, tickets, copy services.
  • Telecommunications: telephone installations, WATS line use for long distance calls (strictly limited).
  • NU Police: off-duty officers for event security.

In order to access the above University services, the organization's president, treasurer, or advisor must complete a requisition, which they can obtain at the SOFS office, and return it to SOFS. An authorized SOFS staff member then countersigns the requisition, thereby approving the charge for the service. The charge for the service will be made against the SOFS general student organization charge account, usually referred to as the "X-account," which is a SOFS account in the University's Accounting Department. SOFS will in turn deduct the amount from the respective organization's account. NOTE: Requistions must be obtained in advance of contact with any University department for supplies or services.

Since the billing is delayed, it is important that an approximate cost for these services be obtained at the time of procurement. The treasurer must consider this amount as an encumbrance against the organization's account to allow for adequate funds to cover the bill when it arrives. When the department has completed the job or filled the order, the organization will be given a form that details the charges, which the organization must retain for their records. SOFS reserves the right to place an encumbrance on any account because of outstanding requistions.


N. Notary Public


SOFS has a notary public service available at no charge to students and student organizations.


O. Raffles


  1. Registration
    All raffles must be registered with the Student Involvement office. This is to ensure that the students are informed about state laws regulating raffles. Each student organization must file a completed Event Planning and Registration Form and Raffle Authorization Form with all required signatures before ordering or selling any raffle tickets.
  2. State Law
    According to state law, all raffle proceeds must go to a charitable organization such as the American Heart Association, Cedars Home for Children, Diabetes Association, etc., or be used for community betterment purposes such as donations to Morrill Hall, scholarships, speakers, etc. The law states that gross proceeds must not exceed $5,000 and that gross proceeds may be used solely for charitable or community betterment purposes, awarding of prizes to participants and operating costs. To qualify as a raffle, 100 percent of the prizes to be awarded must be merchandise prizes not redeemable for cash.
  3. Sales Tax
    Sales tax is due and payable on the fair market value of the prize(s). It is due whether the prize(s) is/are donated or purchased. Sales tax must be paid by the sponsoring organization, the individual or company donating the prize(s) or the individual who wins the prize(s). For additional tax information and assistance, contact SOFS staff in 222 Nebraska Union.
  4. Additional Raffle Regulations
    Raffle regulations include Ticket Regulations, Pre-Sale Audit, Post-Drawing Regulations and other requirements based on the particular aspects of a given raffle. For the most current detailed information contact Student Involvement or the City SOFS office.

P. Student Organization Investments


Organizations can earn interest on their idle funds. The investment of such funds in an insured interest bearing account can increase student organization income. The following procedures must be followed prior to opening an investment account.

  • Determine the cash flow for the student organization financial needs for a quarter (3 months). After figuring the income and expenses for the quarter, the organization will be able to determine if it has enough money to invest.
  • All financial transactions before, during and after the investment, must be handled through the student organization account in the SOFS office.
  • Draw a voucher against the organization's account for the desired amount to invest, made payable to the bank or savings and loan institution where the money is to be invested.
  • The opening of the account will be handled by the SOFS office. The investment (certificate of deposit, passbook account, etc.), will be made out to the organization, c/o Student Organization Financial Services; 222 Nebraska Union; P.O. Box 880452; Lincoln, Nebraska, 68588-0452. The savings certificate or passbook will be held in the office for safekeeping.
  • An investment ledger for the student organization is maintained in the SOFS office to record all activity related to the investment and becomes part of the organization's permanent record.
  • When withdrawals from the investment are required, the organization must complete a Payment Request Voucher. Upon receipt of the Voucher, the SOFS Account Manager will withdraw the requested funds from the investment account and deposit them in the student organization's general SOFS account.

Q. Tickets


Roll-type tickets may be purchased from the SOFS office for student organization events. Tickets printed to specifications may be purchased from UNL Printing Services, or from any outside source.


R. Insurance


  1. Travel/Field Trip Insurance
    Field trip insurance is required for all trips where students participate as an organization outside of the city limits. The coverage is $30,000 accidental death and $2,500 accidental medical. The cost is $0.25 per person per day and is deducted from the student organization's account. Field trip insurance forms that list the name, social security number and beneficiary of the students traveling are available from SOFS or Student Involvement. The organization must complete and return the insurance form to the SOFS office at least two days before organization members leave on the trip. NOTE: Field trips must be registered with Student Involvement.
  2. Liability Insurance
    Student organizations have liability insurance protection available as part of University coverage. The policy covers property damage and personal injury when legal proceedings are brought against the organization and negligence is proven for events held on University property. Proper registration of an event or activity by a Recognized Student Organization with the Student Involvement office insures the organization under this policy. FAILURE TO REGISTER AN EVENT MEANS THE ORGANIZATION IS NOT INSURED. For more information contact either SOFS or Student Involvement.

S. SOFS East Campus


Student Organization Financial Services offers services on East Campus through the Union's administrative office, Room 314, Nebraska East Union. Services offered to recognized student organizations include all of the services listed in the treasurer's handbook section except raffle ticket services and the opening of investment accounts.


T. Treasurer Training


The SOFS staff provide various types of treasurer training at the City SOFS office throughout the academic year. Student organization treasurers learn valuable tips on processing paperwork and becoming familiar with University procedures. An appointment can be made by contacting the City SOFS office.


U. Additional Information


Please do not hesitate to call or visit the Student Organization Financial Services offices for specific information and assistance with all student organization financial needs.


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