B.1.3 Appropriations & Revenue

B.1.3. 1 Financial Stability

Responsible Department: Budget

Date Approved/Amended: December 2, 2010

The College shall maintain a fund balance of nine (9) to eleven percent (11%) of general fund revenue as of August 31 of each year. The Board may modify the fund balance standard as necessary to achieve College priorities and address unforeseen contingencies.

B.1.3. 2 Resource Development: Authorization – External Funding

Responsible Department: Budget

Date Approved/Amended: December 2, 2010

Applications and requests for funding from external sources will be made under the following provisions:

  1. Will provide support for educational program needs that cannot be met through operational funds
  2. Will be in accordance with the College's mission, vision, goals and priorities; and
  3. Will be submitted with the approval of the Chancellor

B.1.3. 3 Resource Development: Grant Application

Responsible Department: Budget

Date Approved/Amended: December 2, 2010

All grant proposals submitted shall be in compliance with College policies and procedures, based on identified needs of the colleges, and in alignment and support of the College's institutional goals and strategic plan.

All College wide and federal applications will designate the Office of Planning and Institutional Effectiveness with its address as the point of contact for grant documents, negotiations, correspondence, and project operations.

Non-governmental applications made by an individual College will designate a contact for project operations and negotiations on all grant documents and correspondence.

B.1.3. 4 Resource Development: Authorized Signatures

Responsible Department: Budget

Date Approved/Amended: December 2, 2010

Upon review of the General Counsel, the Chancellor, or in his/her absence, the Deputy Chancellor shall sign all governmental contracts on behalf of the Board.

The Chancellor or his/her designee is authorized to sign non-governmental grant contracts unless prohibited from doing so by law or agency regulations.

B.1.3. 5 Gifts and Donations: Gifts from Private Sources

Responsible Department: Budget

Date Approved/Amended: December 2, 2010

The authority to accept gifts and donations on behalf of HCC shall be vested solely with the Board, and all bequests of property for the benefit of the institution shall vest in the Board. When not specified by the grantor, funds or other property donated, or the income therefrom, may be expended in any manner authorized by law. The Chancellor shall make recommendations to the Board regarding the acceptance of gifts and donations. The Board may delegate acceptance of gifts to the Chancellor.

The Board shall not accept gifts that discriminate against any person on the basis of gender, race, color, religion, national origin, or disability

Monetary donations received from private sources shall be processed through the HCC Foundation and follow the Foundation's policies and procedures.

B.1.3. 6 Gifts and Donations: Philanthropic Gifts

Responsible Department: Budget

Date Approved/Amended: December 2, 2010

The HCC Foundation (the "Foundation") exclusively supports the philanthropic income and investments of the College. The Foundation serves as a Texas nonprofit corporation and is exempt from federal income tax under section 501(a) of the Internal Revenue Code as an organization described in section 501(c)(3).

The Foundation is a fiscal and organizational independent entity from the College and receives governance through its own Board of Directors. The Foundation Board is made up of business, corporate and community leaders who reside and/or conduct professional endeavors within the boundaries of the College. HCC Board members may serve as ex officio members of the Foundation's Board.

The criteria for philanthropic gifts must be vested in the HCC Foundation and requires that the donor:

  1. Constitutes a public or private funding source
  2. Provides the intent to make a charitable contribution
  3. Invests the gift irrevocably; and
  4. Does not receive any goods or services in exchange for the gift.

B.1.3. 7 Indirect Costs: Definition

Responsible Department: Budget

Date Approved/Amended: December 2, 2010

Indirect costs represent the expenses of doing business that are not readily identified with a particular grant, contract, project function or activity, but are necessary for the general obligation of the organization and the conduct of activities it performs. Examples of indirect costs are:

  1. Maintenance of shared facilities
  2. Depreciation of shared buildings and equipment
  3. Campus-wide or College-wide accounting services
  4. Human Resources
  5. Financial and accounting services
  6. Campus-wide or College-wide library and computing services; and
  7. Utilities of shared facilities

B.1.3. 8 Indirect Costs: Indirect Cost Rate

Responsible Department: Budget

Date Approved/Amended: December 2, 2010

The College shall renew and maintain a federal indirect cost rate.

B.1.3. 9 Indirect Costs: Charging Indirect Costs on Grants and Contracts

Responsible Department: Budget

Date Approved/Amended: December 2, 2010

HCC Personnel are encouraged to seek the maximum allowed indirect costs for all grants and contracts.

B.1.3.10 Investments

Responsible Department: Budget

Date Approved/Amended: December 2, 2010

The Board will comply with the Texas Public Funds Investment Act and state law in its policies regarding investments.

B.1.3.11 Facilities Use

Responsible Department: Budget

Date Approved/Amended: December 2, 2010

Leasing or rental of College facilities, in support of community needs and programs, is permitted, provided that such use does not interfere with HCC operations and is consistent with the College's public purpose. The Chancellor shall establish a schedule of rates competitive with the current market. The setting of rates will at all times employ processes and practices, consistent with the law and those in the realty market, to ensure the College receives fair and accurate market value for use of its property and services.

The College shall use a standard rental/lease agreement throughout the College. Such agreement shall be consistent with the intent and general considerations of commercial rental/lease agreements, require users to provide evidence of indemnification, and be signed by the Chancellor. Requirements for evidence of insurance coverage shall be specified in risk management procedures.

B.1.3.12 Depository of Funds

Responsible Department: Budget

Date Approved/Amended: December 2, 2010

All College funds shall be deposited in FDIC depository banks in accordance with the depository agreement, the investment policy and state law.