B.1.5 Accounting, Reporting and Payroll

B.1.5. 1 Accounting

Responsible Department: Accounting

Date Approved/Amended: December 2, 2010



All accounting procedures must be in accordance and comply with Generally Accepted Accounting Principles (GAAP) and other applicable accounting standards, including but not limited to Government Accounting Standards Board (GASB), Financial Accounting Standards Board (FASB), National Association of College and University Business Officers (NACUBO), Texas Higher Education Coordinating Board (THECB), the American Institute of Certified Public Accountants (AICPA), the State of Texas Audit Office (SAO), and other relevant accounting standards.

The accounting department shall prepare accurate annual financial statements reflecting the financial position of HCC. Financial transactions shall be approved in accordance with Board policy and HCC procedures.

B.1.5. 2 Petty Cash Funds

Responsible Department: Accounting

Date Approved/Amended: December 2, 2010



Petty cash funds may be established only with the approval of the Chancellor and shall be used only to make reimbursements for small purchases of less than $100.00.

The authorized signatory must approve all disbursements from the petty cash fund. Any improper disbursement from the petty cash fund shall be the responsibility of the disbursing individual.

B.1.5. 3 Agency Funds

Responsible Department: Accounting

Date Approved/Amended: December 2, 2010



Agency funds are monies held by HCC, acting as a custodian or fiscal agent on behalf of a student/staff/faculty organization or on behalf of an individual student that cannot be deposited elsewhere. These accounts are not credited with interest; any interest that may accrue on these accounts shall be retained by HCC to offset the administrative costs associated with maintaining them. The monies are deposited with the College for safekeeping, to be used or withdrawn by the organizations at will. Individual organizations are prohibited from establishing a bank account in HCC's name.

State and federal appropriated dollars generated from operating dollars cannot be deposited in an agency fund.

B.1.5. 4 Signature Authority

Responsible Department: Accounting

Date Approved/Amended: December 2, 2010



The Board grants the Chancellor authority to initiate and execute contracts valued at up to $100,000.00. College presidents are authorized to initiate and execute contracts valued up to $25,000. All contracts shall be executed in accordance with HCC policy and procedures.

B.1.5. 5 Small Business Participation

Responsible Department: Accounting

Date Approved/Amended: December 2, 2010



HCC is committed to fostering small business development and will establish a percentage goal of participation annually. HCC shall establish an outreach program to ensure effectiveness of this initiative.

B.1.5. 6 Reports

Responsible Department: Accounting

Date Approved/Amended: December 2, 2010



Periodic financial and budget reports may be submitted to the Board to report on the status of College funds and accounts. Annual financial reports shall be prepared in accordance with relevant law. These financial and budget progress reports shall indicate all receipts and their sources, expenditures and their classification, and the various fund balances at the beginning and end of the period.

B.1.5. 7 Annual Financial Reports

Responsible Department: Accounting

Date Approved/Amended: December 2, 2010



Annual financial reports shall be prepared in accordance with the Annual Financial Reporting requirements for Texas Public Community and Junior Colleges issued by the Texas Higher Education Coordinating Board. In addition, it shall conform, where applicable, to the following requirements:

  1. General Accepted Accounting Principles (GAAP)
  2. Governmental Accounting Standards Board (GASB)
  3. Financial Accounting Standards Board (FASB)
  4. State of Texas Audit Office (SAO)

An annual audited financial report shall be approved by the Board in the time prescribed by law.

Annual Financial Report FY2013

B.1.5. 8 Payroll Procedures

Responsible Department: Accounting

Date Approved/Amended: December 2, 2010



Paydays will be established by the Chancellor. If the payday falls on a weekend, holiday, or other non-business day, payday shall be the prior business day.

B.1.5. 9 Salary Deductions and Reductions

Responsible Department: Accounting

Date Approved/Amended: December 2, 2010



HCC has the authority to withhold funds from employee salaries as authorized by the employee and/or as authorized by law.

B.1.5.10 Student Payments

Responsible Department: Accounting

Date Approved/Amended: December 2, 2010



HCC shall establish a payment policy for students to make tuition and other payments.

B.1.5.11 Cashiers

Responsible Department: Accounting

Date Approved/Amended: December 2, 2010



All collections of HCC funds will be the responsibility of the officially designated cashier and shall be safeguarded and deposited in the time prescribed by applicable law and HCC procedures.