Accounting & Financial Reporting (AFR) and Sponsored
Projects Accounting (SPA) departments have the responsibility
for creating and maintaining agency Indexes (FOPALs). The AFR
department is responsible for the agency Indexes (FOPALs) created
for student organizations recognized by the Associated
Students of New Mexico State University (ASNMSU). The
SPA department is responsible for all other agency Indexes (FOPALs).
The AFR department will interpret this policy when necessary.
Indexes (FOPALs) Defined
Indexes (FOPALs) are defined by the National
Association of College and University Business Officers
(NACUBO) Financial Accounting and Reporting Manual
are monies held by an institution acting as custodian
or fiscal agent. The monies are deposited with the institution
for safekeeping, to be used or withdrawn by the depositor
at will. These Indexes (FOPALs) may be held on behalf of students,
faculty, staff, organizations, or some other third party
(collectively referred to as "organizations").
of Agency Indexes (FOPALs)
general, Agency Indexes (FOPALs) monies are the property of the
organization and can be withdrawn or disbursed at its
discretion. The University has no liability for the expenses
and no claim on the surplus, or Index (FOPAL) balance, unless the
remaining surplus has been abandoned. Surplus is considered
abandoned if the fund balance of an Agency Index (FOPAL) has
not changed in three fiscal years and the University has
not been formally instructed as to the manner of disbursing
the surplus. Monies that are deemed abandoned will be deposited
to the University's general Scholarship Fund. When the
purpose of an agency Index (FOPAL) is complete, the Index (FOPAL)
must be closed. The responsible person for the Agency Index (FOPAL) can authorize the donation of any surplus monies
to the University or the NMSU Foundation, Inc., if desired.
following are examples of appropriate uses for Agency Indexes (FOPALs): conferences, when a University faculty
or staff member is acting as a facilitator for an established
organization (.e., external to the University) and when
the conference is funded wholly from registration fees
(i.e., no University contribution); employee funds,
when the funding comes from the employees and the employees
decide on the manner in which funds are to be used; professional
and student organizations, such as fraternities and
Agency Indexes (FOPALs) cannot be used to record University fund raising
activities. Fund raising activities by and for student
organizations are permissible, but organizations must
submit an activity approval form to the Activities Office
of Corbett Center prior to initiating a club fund raiser.
University receipts cannot be issued to donors, contributors
or participants of such fund raising activities.
should be no written or implied agreement between donors,
contributors or participants and New Mexico State University,
therefore, the organization is solely responsible for
monies and compliance with any funding
monies cannot be deposited in agency Indexes (FOPALs) unless approved
by the Controller's Office. University expenses cannot
be paid from agency Indexes (FOPALs). Any purchase made from a
non-ASNMSU club agency Indexes (FOPALs) which is later transferred
by journal voucher to a University Index (FOPAL)will require
Central Purchasing Office approval. Agency Indexes (FOPALs) established
for ASNMSU clubs or organizations may share in the cost
of ASNMSU expenditures. Expenditures are first incurred
by ASNMSU Indexes (FOPALs)and then the portion to be paid by
a club Index (FOPAL) is transferred by journal voucher. Branch
Campus student clubs and organizations may do the same,
provided a policy exists which indicates how the clubs
will share expenditures.
Agency Indexes (FOPALs)
organization must submit a written request for a new agency Index (FOPAL)
to the AFR or SPA department. Upon receiving the request,
for Establishing Agency Indexes (FOPALs) is sent to the organization.
The organization responds to the Questionnaire which should
be returned the AFR for distribution. The AFR or SPA will
decide if the Index (FOPAL) request meets the definition of
an agency Index (FOPAL). If it is determined that an agency Index (FOPAL) is appropriate then a new Index (FOPAL) will be created.
A responsible person should be assigned to the Index (FOPAL)
who has the authority to act on behalf of the organization.
The responsible person is the contact person with the
University and has authority to approve the disbursement
of monies for the organization.
Requests. Direct pay requests are to be used for all external
purchases made on agency Indexes (FOPALs), including travel. Reimbursement
Vouchers cannot be issued on agency Indexes (FOPALs) since they
are intended for the reimbursement of expenses paid by
a University employee for a University purpose. Use of
personal monies by a University employee for an agency Index (FOPAL) purpose can be reimbursed on a Direct Pay Request.
Turn around time for direct pay requests will be in the same
frame as for University direct pay requests.
Financial Operations Department (FO) does not review or
audit direct pay requests, but they ensure that the top and
bottom portion of the Direct Pay Request balances and that
a fiscal monitor's signature is present. The fiscal monitor
is responsible to determine that a sufficient cash balance
exists and that the Direct Pay Request has the authorized signatures.
Since monies in agency Indexes (FOPALs) belong to a third party,
most expenditures types will be allowed.
It should be made clear to vendors that they are transacting
with the organization and not with the University. As
such, vendor billings should be made to the name of the
organization and not to New Mexico State University. Such
billings should not be mailed directly to Financial Operations, but should
be mailed directly to the responsible person for the agency Index (FOPAL).
Internal Purchases. Agency Indexes (FOPALs)
can be charged by Interdepartmental
Voucher (IDV) when goods and services are purchased
from campus departments. Gross receipts tax is applicable
to such purchases. If insufficient monies exist in an agency Index (FOPAL) when an IDV is presented for fiscal monitor's
approval, the IDV will be returned to the department originating
the IDV. It will be the department's responsibility to
collect for amounts owed by an organization. Interdepartmental
vouchers can be used by agency Indexes (FOPALs) when charging
campus departments for sales of goods or services to campus
Accounts Receivable. The University
Accounts Receivable Office cannot send invoices to donors,
contributors or participants on behalf of an organization
holding an agency Index (FOPAL).
Petty Cash. University Petty Cash
Funds cannot be established by agency Indexes (FOPALs). Cash can
be withdrawn by completing a Cash
Withdrawal Form and presenting the form to the Cashier's
Office located in the Educational Services Building. As
with direct pay requests, the responsible person and fiscal
monitor signatures are required prior to the disbursement
Purchasing. Purchase Orders are
not issued for agency Indexes (FOPALs). The issuance of a purchase
order number implies a University commitment to purchase.
Travel Authorizations. Similar to
purchase orders, travel authorizations are not issued
on agency Indexes (FOPALs). Airline tickets cannot be charged
to University agency Indexes (FOPALs) at travel agencies. Travel advances
should be made directly from the agency Index (FOPAL) via direct pay request or cash
withdrawal. If any portion of student club travel
is to be paid from an agency Index (FOPAL), that portion is
shown as "cost to external" on the travel authorization.
A Direct Pay Request or cash withdrawal for the portion to
be paid from an agency Index (FOPAL) can accompany the travel
Payroll expenditures cannot be charged to agency Indexes (FOPALs)
through the University Payroll System, nor can payroll
expenditures be transferred into agency Indexes (FOPALs) from
a University Index (FOPAL). However, a University employee acting
as a private contractor to an organization may be compensated,
by Direct Pay Request, for services rendered to the organization.
Property. Equipment purchases in
excess of $1,000 should be charged to an account code 780xxx,
and will be tagged by the Property Office as non-University
property if placed on University premises. If the responsible
person of an agency Index (FOPAL) wishes to donate such equipment
to the University, a letter must be sent to the Property
Office with a copy to the University Advancement Office
detailing the donation.
Tax-exempt Status. The University's
tax exempt status does not apply to agency Index (FOPAL) purchases.
Tax Remittance. The University does
not assume the responsibility for complying with tax laws
on behalf of the organization, such as submission of federal
tax form 1099 or the remittance of New Mexico Gross Receipts