Subsection A. Appropriations Process
1. General Statement
Appropriated funds in support of operations and permanent improvements at Northern Illinois University are derived primarily from the General Revenue Fund, the Income Fund, and the Capital Development Bond Fund. All such appropriations are made annually by the General Assembly for a fiscal year ending on June 30. The purpose of this Regulation is to outline, in general terms, the significant steps in the appropriations process.
2. Preparation of Request Documents
The university shall prepare appropriation request documents annually in accordance with detailed instructions issued by the IBHE. The president shall submit to the Board of Trustees a summary and analysis of the total university request, accompanied by recommendations for Board action. The university's request, as approved by the Board of Trustees, is then submitted to the staff of the IBHE, which conducts hearings with university representatives to resolve questions and to discuss pending recommendations. The IBHE then acts on the recommendations of its staff and submits its recommendations to the Governor and the General Assembly.
3. Submission of Data to Bureau of the Budget and Legislature
The university submits information on its requests for operating and capital appropriations to the Bureau of the Budget, and, after the Governor has delivered his annual budget message to the General Assembly, shall prepare an appropriation bill which includes appropriations from all funds other than the Capital Development Bond Fund. The university shall assume responsibility for obtaining effective sponsors for the bill and will take the steps necessary to assure its timely introduction and to respond to inquiries from the General Assembly, regarding its appropriations request ("An Act in relation to State finance," approved June 10, 1919, as amended).
4. Line Item Transfers
All requests for transfers between appropriated line items shall receive Board of Trustees approval prior to submission of such requests to the IBHE and the Bureau of the Budget.
5. Requests for Release of Funds
Appropriated funds for permanent improvements must be released by the Governor prior to the obligation of such funds.
Subsection B. Obligation of Financial Resources
The Board of Trustees is the contracting entity for all contracts involving the financial resources of the university. The financial resources of the Board of Trustees are defined to include all funds appropriated to, or lawfully received by or belonging to, the Board or the university, including those items of income received by the university and retained in its treasury in accordance with the provisions of "An Act in relation to State finance," approved June 10, 1919, as amended.
1. Classification
For the purpose of this Regulation, contracts and other agreements involving the commitments or obligations of the financial resources of the Board of Trustees are classified into the following categories:
a. Purchases
Purchases are contracts and other agreements involving the acquisition of personal property or services other than personal services, consultant and professional services and services relating to capital contracts as defined for this Regulation.
b. Personal Services
Contracts for personal services are those which involve the Board in an employer-employee relationship, and include contracts with faculty, administrative personnel, civil service employees, student employees, as well as related collective bargaining agreements.
c. Performance
Performance agreements are contracts and agreements with outside agencies which commit the university to undertake or participate in the performance or supply of a specified task, service or product, including grants and contracts with governmental or private agencies for specific programs of research, instruction, and public service.
d. Professional Services and Consulting
Contracts for professional services and consulting are contracts and other agreements involving the services of consultants, actuaries, insurance underwriters, brokers, attorneys, and others providing specialized and technical professional services.
e. Capital
Capital contracts are those involving the physical facilities of the Board of Trustees, including real estate transactions; construction contracts; and service contracts related to capital. The approval and signature requirements for capital contracts are set forth in Section VI of these Regulations.
2. Administrative Approval
a. Purchases
The Board of Trustees shall adopt rules governing procurement and bidding in coordination with the other senior governing boards of higher education in the State of Illinois. The university is authorized to conduct its own purchasing activities in accordance with the following:
- (1) The university is authorized to enter into purchase transactions for utility services, library books and periodicals, textbooks, food products, insurance, search firms not otherwise requiring Board of Trustees approval pursuant to statute or regulation and items authorized for resale to individuals and non-university organizations regardless of amount.
- (2) The university is authorized to enter into purchase transactions for equipment and other materials or services associated with capital improvement projects if the bid estimates or the actual bids do not exceed the budgets previously approved by the Board of Trustees. (See Regulation Section VI.B.1.)
- (3) The university is authorized to enter into contracts with visiting performers, regardless of amount, provided that payment is to be made from gate receipts and student activity funds.
- (4) The university is authorized to enter into purchase transactions and subrecipient grant agreements associated with sponsored research and other sponsored activities under grants and contracts regardless of amount.
- (5) Transactions not listed above involving an obligation of $250,000 or more, regardless of the source of funds, shall be approved by the Board of Trustees.
b. Personal Services
The Board of Trustees employs such personnel as it may deem necessary, as hereinafter provided:
- (1) Faculty and Administrative Employees
- Appointments shall be administered in accord with Section II of these Regulations.
- (2) Civil Service Employees
- Appointments shall be administered in accord with Section III of these Regulations.
- (3) Student Employees
- Appointments shall be administered in accord with Section IV of these Regulations.
c. Board Approval
The president shall:
(a) bring to the Board all matters required by statute, regulation or policy;
(b) advise the Board of all matters not specifically required by law but which as a matter of sound management practice should be brought to the Board’s attention, including, but not limited to, those matters with: i) significant financial implications; ii) substantial public interest or ethical considerations; and/or iii) material changes in or deviations from standard contractual provisions and obligations; and
(c) timely inform the Executive Committee of the Board of any procurement matter that significantly deviates from matters previously approved by the Board.
d. Performance
The approval of the Board of Trustees shall be required in the case of performance agreements which would result in the commitment of institutional funds on an ongoing basis to the establishment of a new unit of instruction, research, or public service as defined by the IBHE. The temporary establishment of such units to administer external funds can be authorized by the president. The president is authorized to enter into all other performance agreements.
e. Professional Services and Consulting
(1) Contracts for professional services and consulting involving an obligation of $250,000 or more, regardless of the source of funds, shall be approved by the Board of Trustees. Contracts for professional services and consulting for the president or directly for the Board involving an obligation of $100,000 or more, for any transaction or series of related transactions regardless of the source of funds, shall be approved by the Executive Committee of the Board of Trustees. The president is authorized to enter into all other agreements for consulting and professional services.
(2) The university shall follow principles of openness and competition in securing such services except under well-justified special circumstances. Reasonable efforts shall be made to encourage qualified vendors to participate and to allow for a competitive assessment of costs and benefits. The structure of the award process shall be primarily based upon objective judgment of stipulated criteria. Fees shall be commensurate with the qualifications of the contractor, standard fees in the industry and the nature of the services to be provided.
3. Signature Requirements
Subject to the administrative approval provided herein, the president is authorized to sign all contracts and other agreements on behalf of the Board of Trustees. The president is authorized to delegate in writing the authority to sign contracts and other agreements to members of the university staff.
4. Affirmative Action Requirements
The university shall establish procedures to ensure that all contractors, vendors, and suppliers are in full compliance with the Illinois Human Rights Act, the Equal Employment Opportunity Act of 1972 and other applicable state or federal nondiscrimination and affirmative action laws and are committed to follow all such applicable laws. The university shall encourage the opportunity for business enterprises of minorities, females and persons with disabilities to compete with all other businesses for university contracts and business.
5. Reports on Obligations of Financial Resources
The president shall provide the Board with the following reports on the obligations of financial resources:
a. Quarterly Progress Reports
The president shall provide quarterly reports of all obligations of financial resources greater than $100,000 but less than $250,000.
b. Annual Report on Activities
At the conclusion of each fiscal year, the president shall provide the Board with a summary of all obligations of financial resources during the fiscal year by category.
Subsection C. Travel Regulations
Reimbursement for travel on behalf of the university shall be pursuant to the regulations established by the Travel Regulation Council and Higher Education Travel Control Board.
Reasonable and proper expenses incurred by candidates for positions at Northern Illinois University and those incurred by newly appointed employees prior to the official employment date may also be reimbursed.
New employees may be reimbursed for moving expenses within the guidelines provided by the university's "Moving Expense" Policy.
Non-state employees, including members of student groups representing the university, may be reimbursed for travel expenses associated with their involvement in university activities at the university's request.
Subsection D. Nonappropriated Funds
Financial resources available to the Board of Trustees for the operations of Northern Illinois University include appropriations by the Illinois General Assembly and certain other nonappropriated funds as permitted by statute. "An Act in relation to State finance," approved June 19, 1919, as amended, provides that certain nonappropriated funds may be retained by the university and used in the manner and for the purposes set forth therein.
1. Depositaries
All funds not required to be paid into the State Treasury shall be deposited in banks authorized by the Board of Trustees to serve as depositaries.
Each year the university shall file with the Board of Trustees a report of beginning balances, deposits, withdrawals, and ending balances for all bank accounts.
2. Disbursements
The Board of Trustees shall designate those persons duly authorized to sign checks, drafts, or orders drawing upon funds deposited in authorized banks in accordance with procedures approved by the Board.
3. Investment of Funds
Several funds of the same category or classification may be combined in a single account with an authorized depositary; however, the books and records of the university shall reflect the amount in each fund so deposited and the charges against each fund. Any amount of such deposits in excess of the amount reasonably necessary to meet the anticipated expenses of such funds may be invested in any investment permitted by the laws of the State of Illinois for the investment of public funds unless otherwise restricted by a bond or other legal covenant. A statement of investment policy shall be filed annually with the report on depositaries.
4. Budgets
Each year the university shall prepare and submit to the Board for approval an annual operating budget reflecting estimated income and projected expenditures by major categories for the various nonappropriated funds. (See also Regulation Section V.H.)
5. Insurance Protection
The university shall obtain and carry a blanket crime policy which extends protection to the nonappropriated financial assets of the university and the Board.
6. Payment of Wages and Benefits
Employees receiving payment of wages and benefits from nonappropriated funds, including but not limited to revenue bond operations, shall be treated on an equal basis with employees receiving payment of wages and benefits from appropriated funds. (See Faculty and Administrative Employees, Regulation Section II., and Civil Service Employees, Regulation Section III.)
7. Bond Resolutions
In the event of a conflict between the provisions of these Regulations and the requirements of specific bond resolutions adopted by the Board of Trustees, the latter shall govern.
Subsection E. Campus Traffic
1. Traffic Control
The president shall make and enforce by appropriate measures such rules and regulations with reference to the control of motor vehicles and pedestrian and vehicular traffic upon the campus of Northern Illinois University as are necessary for the purpose of securing orderly management and the preservation of safety.
2. Vehicle Registration
The president shall establish and enforce by appropriate measures a system for registration and identification of vehicles owned or operated by faculty, administrative and civil service employees, and students. The university may also establish and enforce by appropriate measures a system for registration and identification of visitor owned or operated vehicles.
Subsection F. University Vehicles
1. Markings
The name of the institution, logo, or other form of identification shall appear on all motor vehicles owned or controlled by the university, with the following exceptions: automobiles leased or purchased for the exclusive use of the president or assigned to employees for the conduct of university business with the approval of the president and the chair of the Board may be kept without markings. Vehicles used exclusively in investigative services may be kept without markings.
Subsection G. Internal Budgets
1. General Statement
The university shall prepare annually an overall financial plan detailing the proposed use of all funds available to the Board of Trustees for the operation of the institution. This detailed plan shall be referred to as the "Internal Budget" and shall reflect the anticipated income and projected operating expenditures for both appropriated and nonappropriated funds. The Board shall take action on the internal budgets each year. The president is authorized to make any reasonable changes in the budget as presented, within statutory limitations and within the total income available.
Subsection H. Annual Financial Reports
1. General Statement
A detailed annual financial report shall be prepared by the university for submission to the president and to the members of the Board of Trustees. The report shall present clearly and in accordance with generally accepted accounting principles the results of the operations for the period and the financial condition at the end of the period.
Subsection I. Not-for-profit Corporations
1. General Statement
In order to further the educational objectives of Northern Illinois University, separate not-for-profit corporations, wholly charitable and educational in nature, may be established under the "General Not-For-Profit Corporation Act" of Illinois. It is recognized that these corporations are legal entities, distinct and separate from the Board of Trustees, over which the Board does not exercise control and for which the Board has no legal responsibility.
2. Liaison Between the Board of Trustees and Corporations
The chair shall appoint a liaison between the Board and the corporation.
3. Contributions Involving a Commitment of Resources
The Board of Trustees shall not be committed to the use of university resources for the operation, maintenance, and/or administration of a contribution without approval of such commitments, subject to the guidelines established for contract approval.
Subsection J. Contributions to the University and Not-for-profit Corporations
1. General Statement
The Board of Trustees is charged by statute to succeed to and administer all trusts, trust property, and gifts belonging or pertaining to Northern Illinois University. The Board through the president or designee may accept contributions subject to appropriate internal rules.
In order to further the educational objectives of the university, the Board, upon the recommendation of the president, may contract with separate not-for-profit corporations, wholly charitable and educational in nature, established under the "General Not-For-Profit Corporation Act" of Illinois. It is recognized that these corporations are legal entities, distinct and separate from the Board of Trustees or the university, over which the Board and the university do not exercise governmental control and for which the Board and the university have no legal responsibility. Contracts permitted by this provisions may be executed by the president or designee, and may include as their purpose fundraising, administration of donated funds and property, trust administration, endowment administration, promotion and maintenance of beneficial alumni relations, promotion of education, research or athletics and other lawful actions.
2. Liaison Between the Board and Such Corporations
Unless otherwise provided by Board Bylaws or other Board action, the president shall be responsible for liaison between the Board and any such corporations.
3. Northern Illinois University Foundation
A "not-for-profit corporation," known as the Northern Illinois University Foundation, has been established to encourage private support for the mission and interests of Northern Illinois University, and the Board of Trustees licenses such foundation to use "Northern Illinois University" as a part of its corporate name. Pursuant to contracts authorized by the Board of Trustees, the Foundation may receive, invest and administer contributions to benefit the university. Said contract shall require the Foundation to be guided by generally accepted accounting principles relating to charitable contributions.
4. Northern Illinois University Alumni Association
Pursuant to the contracts authorized by the Board of Trustees, the president may enter into a contract with an alumni association that is mutually beneficial to the university and the association.
5. Contributions
Contributions are defined to include gifts of cash, marketable securities, closely held stock and real or personal property, endowments, trusts, bequests, devises and other donations made to the university.
6. Contributions Involving a Commitment of Resources
In the case of contributions which involve a significant commitment of additional resources from the university for the operation, maintenance or administration of the contribution, prior approval of the president shall be required.
7. Funds Not Recognized As Contributions
In the case of "scholarship or fellowship" funds where the donor wishes to designate the student to receive the aid, the university may act as agent for the donor in receiving and disbursing the funds; however, the funds so received shall not be deemed university funds and shall not be, recognized as contributions to the university.
8. Reports to the Board
The president shall provide the annual reports of nonprofit corporations that summarize the receipts of contributions for the benefit of the university.
Subsection K. Tuition and Fees
1. Registration Fees
Registration fees are defined as tuition and other fees established by the Board of Trustees which are assessed to all students as a prerequisite for registration unless a waiver or other exemption has been authorized by the Board of Trustees or by statute. The Board of Trustees, as charged by statute, shall annually review and establish registration fees, including tuition rates.
Note: To assure accurate interpretation and fair implementation, the following reflects accepted past administrative practice. It specifically applies to other relevant Regulations, i.e., Section II.D.9. (educational benefits of faculty and administration employees) and Section III.C.7. (educational benefits of civil service employees):
The tuition and other registration fees eligible for waiver shall be only those usually charged undergraduate or graduate students. Fees directly related to a particular course or program of study, including but not limited to off-campus course delivery fees, are ineligible for waiver.
2. Special and Mandatory Fees
Board of Trustees approval is required to initiate or change the amount of room and board fees and any fee which is mandatory for admission or graduation. Such fees include application fees, graduation fees, and service fees.
3. Waivers
Board approval is required to waive registration fees and any fees established by the Board, except as follows:
- When required by statute.
- When authorized by Board Regulation (refer to the Index).
The application fee may be waived for:
- Applicants for admission to the Graduate School if the applicant received his or her undergraduate degree from Northern Illinois University.
- Students who do not apply for degree programs, including those who enroll in extension courses.
- Direct grant federal programs when a stipulation of participation in those programs requires this waiver.
- Disadvantaged and needy students.
4. Advance Deposit
Subject to Board approval, the university may require an advance deposit from a student who has been accepted for admission or who preregisters for a subsequent term. This deposit will be applied to the registration fees for that term.
5. Collections
All registration fees must be collected prior to or during the academic term to which they apply. The university may offer a plan which would permit students to pay their tuition and fees in two or more installments during the academic term. All persons must meet all financial obligations to the university in order to maintain their status as enrolled students.
6. Refunds
The university shall establish a refund policy consistent with applicable laws and regulations. The refund policy may be amended with the approval of the president. The term "refund" as used in this Regulation may mean the cancellation of an unpaid obligation as well as an actual refund of amounts previously paid.
Subsection L. Reimbursable Business Expenses
1. General Statement
The following Regulations are issued to provide uniform maximum reimbursement guidelines for the specific kinds of nontravel business expenses included within. Reimbursements made under this Regulation must be supported by a proper receipt, invoice or signed statement, and must be in conformance with all applicable statutes or contracts.
2. Entertainment and Promotion
The university may use resources of the Board of Trustees for entertainment, community relations, conventions or public relations related to the general objectives of the institution and the mission of the university.
3. Membership in Private Clubs
The university shall not use resources of the Board of Trustees to pay for memberships in private clubs, whether in the name of the university or an individual. The reimbursement of valid expenses incurred in a private club shall be permitted within the limitations specified in the Board's Travel Regulations (Section V.C.) and paragraphs 2, of this Regulation.
Subsection M. Campus Mail Service
1. Use of Campus Mail Service
The university shall establish procedures for the operation of campus mail services. Such procedures shall provide that United States mail and official university mail shall have priority over other campus mail. In order to provide for the efficient delivery of United States mail and official university mail, the university may limit the size and number of other campus mailings.
Subsection N. Tax-deferred Compensation Plan
1. Policy Statement
It shall be the policy of the Board of Trustees to make available to each person, now or hereafter employed, the privilege of electing to participate in tax-deferred compensation plans for which they may be eligible under state and federal statutes and regulations.
2. Plan Administration
- This plan shall be administered by the president who shall have the authority to take such actions not inconsistent herewith, whereby the employees of the Board of Trustees may enter into agreements with the employer to elect to receive, in lieu of salary or wages, benefits which are tax-deferred under the federal Internal Revenue Code and related state law.
- Neither the Board of Trustees nor any representative thereof will recommend any single participating company, decisions over choice of programs and plans being strictly reserved to the participating employee. The Board can however, on recommendation of the president, limit the number of companies authorized to participate in this plan.
Subsection O. Administrative Closings
1. Emergency Closing
Due to natural emergencies, state or federal emergencies or reasons of health and safety, part or all of the university may be subject to administrative closure. Emergency closings shall extend until such time as the emergency giving rise to the closing has been resolved so as to permit resumption of normal operations.
2. Economic or Conditional Closings
Part or all of the university may be subject to two days of administrative closure during the period December 26 through December 31 when such closure will provide significant operational cost savings. Other closings may be authorized according to conditions approved by the president.
3. Declaration of Closing
Emergency, economic or other closures of the university shall be authorized by the president.
Subsection P. Intellectual Property Rights
1. Right to Intellectual Property
The Board of Trustees, in order to facilitate the useful application of knowledge, research and other creative activity, encourages and supports efforts of employees and students to develop products, inventions, and other forms of intellectual property. It is also recognized that the Board, through the university, has certain rights and interests under federal and state law with regard to intellectual property developed by employees and students. Such intellectual property includes inventions, products, computer software, literary and artistic works. The Board directs the university to maintain policies and procedures to appropriately assess these rights and provide supportive services.