OIST Graduate University
Policies, Rules & Procedures
Authority:
Approved by the President
Okinawa Institute of Science and Technology School Corporation Act

Chapter 26: Finance and Accounting
26.1 Policy
The Okinawa Institute of Science and Technology School Corporation (the“Corporation”) relies upon the provisions of the Okinawa Institute of Science andTechnology School Corporation Act in combination with policies, rules and procedures
set out in this Chapter, in managing the financial affairs and accounting of the
Corporation. This Chapter sets forth the financial and accounting standards, practice,and rules of the Corporation used to monitor its financial conditions andadministrative performance and to assure the smooth operation of activities of the
Corporation in support of the education and research missions of the OIST Graduate
University (the University).
26.1.1 Accountability & Transparency.
The Corporation may prepare financial statements based on the internationallyrecognized accounting standard in addition to the ones based on the OIST School
Corporation accounting standards stipulated by the Japanese government in orderto gain its accountability and transparency to the international donors or provider offunds.
26.1.2 Applicable Standards.
The financial statements are prepared in accordance with applicable accounting
standards relevant to OIST School Corporation.
26.2 General Considerations
26.2.1 Fiscal YearThe fiscal year of the Corporation shall commence annually on April 1 and end on
March 31 of the following year.
26.2.2 Chief Administrator in Charge of Accounting
The CEO/President shall be responsible for financial affairs and accounting of the
Corporation. The CEO/President may have the Secretary General conduct the duties
in part.
26.2.2.1 The Vice President for Financial Management shall have jurisdiction
over the financial and accounting affairs of the Corporation under the supervisionof the CEO/President and the Secretary General.
1ch26_finance-and-accounting_en_20240101_cl26.2.3 Titles of Accounts
The accounting of the Corporation shall be handled in accordance with the titles ofaccounts separately stipulated.
26.2.4 Accounting Books and Vouchers
The Corporation shall, through accounting books and vouchers, record and maintainaccurate records of all required matters in an orderly fashion.
26.2.4.1 The formats, types, forms and retention periods of accounting books andvouchers shall be as separately stipulated. (Refer 26.2.5 Books & Ledgers [Link],
26.2.6 Vouchers [Link], 26.3.9 Storage of Documents [Link])
26.2.4.2 Accounting books and vouchers may be recorded and stored in any
electronic media.
26.2.5 Books & Ledgers
The accounting books stated in 26.2.4.1 [Link: 26.2.4] are as follows:
26.2.5.1 General Ledger
26.2.5.2 Table of Budget Execution Status
26.2.5.3 Subsidiary Book
A. Cashbook
B. Fixed Asset Ledger
C. Petty Cashbook
26.2.6 Vouchers
The vouchers stated in 26.2.4.1 [Link: 26.2.4] are as follows:
26.2.6.1 Transfer vouchers
26.2.6.2 Receiving vouchers
26.2.6.3 Disbursement vouchers
26.2.6.4 Revenue vouchers
26.2.6.5 Expense vouchers
26.2.7 Preparation of Vouchers
To prepare the vouchers, date of preparation, account title, business partner, sum,details of transaction, and other necessary items of information shall be specified
based on the related straight documents with the evidential documents concerning
the transaction attached.
26.2.7.1 Contractual documents, invoices, billing statements, and other similar
documents shall constitute the evidential documents stated in the above section.
26.3 Rules
26.3.1 Accounting Procedures and Handling of Money
For purposes of this Chapter, “money” and “securities” shall be defined as follows:2
ch26_finance-and-accounting_en_20240101_cl

“Money” shall mean any cash (including checks, postal money orders, transfer slips
and payment notes) and deposits (including postal deposits and money in trust).
“Securities” shall mean any national and local government bonds, governmentguaranteed bonds (which refer to bonds refund/payment of principal/interest ofwhich is guaranteed by the government) and other securities designated by the Prime
Minister.
26.3.1.1 Accounting Supervisor Authority and Responsibilities:
The Accounting Supervisor who shall be responsible for overall accounting shall,accurately and promptly, execute accounting transactions including the executionof budget and is responsible for receiving and paying.
The Vice President for Financial Management shall serve as the Accounting
Supervisor of the Corporation.
26.3.1.1.1 The Accounting Supervisor may cause any other staff(s) to handle
any part of his or her business.
26.3.1.1.2 In the event that the Accounting Supervisor is unable to act, a person
designated by the Secretary General shall act on his behalf.
“Unable to act” shall be those cases falling under the category of the following.
(1) In case of a vacancy for Accounting Supervisor(2) When the Accounting Supervisor cannot engage in duties for a long period
due to days off, holidays, vacation, illness, etc.
(3) During long-term travel on business26.3.1.2 Receiving and Paying and Supervisor for receiving, paying and custodyof money
Receiving, paying and custody of money shall be performed by the Supervisor forreceiving, paying and custody of money who is under direct control of the
Accounting Supervisor.
26.3.1.2.1 The manager in charge of receiving, paying and custody of money inthe Budget Section shall serve as the Supervisor for receiving, paying andcustody of money of the Corporation.
26.3.1.2.2 The Supervisor for receiving, paying and custody of money shall notreceive or pay any money or security that is not relevant to the business of the
Corporation.
26.3.1.2.3 The Supervisor for receiving, paying and custody of money shall beauthorized to designate a Cashier from among the personnel in the section andmandate the personnel to engage in accounting and disbursing duties.
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ch26_finance-and-accounting_en_20240101_cl26.3.1.3 Transactions with Financial Institutions
The Accounting Supervisor shall be in charge of the procedures for opening or
closing an account in banking institutions.
26.3.1.3.1 Bank accounts shall in principle be opened in the name of the
CEO/President.
26.3.1.3.2 The Supervisor for receiving, paying and custody of money shall keep
the banking seals and be in charge of sealing.
26.3.1.4 Custody of Cash
The Supervisor for receiving, paying and custody of money shall deposit all cash
excluding the minimum petty cash with financial institutions, etc.
26.3.1.4.1 Securities shall be, in principle, deposited for safekeeping.
26.3.1.4.2 The Supervisor for receiving, paying and custody of money shallmanage cash and bank passbooks, making assurance doubly sure of keeping
them in the safest place.
26.3.1.4.3 the cashbooks stipulated in 26.2.5 [Link: 26.2.5] must be updated
and maintained, writing up the book for each receipt or payment.
26.3.1.4.4 Securities shall be managed for safekeeping in like manner as statedin 26.3.1.4 when they are held on hand notwithstanding the provisions of
26.3.1.4.1.
26.3.1.4.5 Postage stamps, cash vouchers, and certificate stamps authorized by
the Corporation shall be kept in trust pursuant to cash.
26.3.1.4.6 In terms of 26.3.1.4.5, the receipt-payment books must be updated,writing up the book for each receipt or payment.
26.3.1.5 Petty Cash
The Accounting Supervisor shall be authorized to keep petty cash for small andurgent payments.
26.3.1.5.1 The management stated in 26.3.1.5 shall be prescribed by from
26.3.1.6 to 26.3.12.
26.3.1.5.2 In terms of 26.3.1.5.1, the petty cashbooks stipulated in 26.2.5 shallbe updated and recorded in the ledger for each receipt or payment.

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ch26_finance-and-accounting_en_20240101_cl26.3.1.6 Petty Cash Supervisor and Petty Cash Clerk
The receipt and payment of petty cash shall be conducted by the Clerk for Receipt
and Payment of Petty Cash (hereafter, “Petty Cash Clerk”) under the supervisionof the Supervisor for receiving, paying and custody of money.
26.3.1.7 Establishment of Petty Cash
When the Accounting Supervisor determines that the establishment of petty cash
is necessary, the Accounting Supervisor must report to the Secretary General for
approval, specifying the petty cash limit and the required management items.
26.3.1.7.1 When the Secretary General approves the establishment of petty
cash under the provisions of 26.3.1.7, the Petty Cash Clerk must submit a petty
cash invoice to the Supervisor for receiving, paying and custody of money.
26.3.1.7.2 Petty cash shall not exceed 200,000 yen.
26.3.1.8 Receipt, Payment and Custody of Petty Cash
The Petty Cash Clerk must not mix Petty Cash with personal funds, and muststrictly conduct the receipt, payment and custody of petty cash.
26.3.1.8.1 The Petty Cash Clerk must record all receipts and payments in the
petty cash ledger, and check actual cash on hand against the ledger balancemonthly.
26.3.1.9 Petty Cash Payments
Petty cash payments shall be limited to urgent cases and situations where payment
in cash is necessary, and shall not exceed truly necessary amount for the businesspurposes.
26.3.1.9.1 Petty cash payments shall be made in exchange for receipts from theparties receiving payments.
26.3.1.9.2 Before making payments, the Petty Cash Clerk must confirm thatthese are for expenses that should be borne by the Corporation by having theparties receiving payments display the items being sold or otherwise show thereasons for payment.
26.3.1.9.3 Petty cash payments shall not be issued for repayments in cases when
specified procedures are required.
26.3.1.10 Petty Cash Receipts and Payments Reports, and Requests for Funds
The Petty Cash Clerk must prepare a Petty Cash Receipts and Payments Report at
the end of each month attaching receipts or other documents as evidence of thepayments specified in 26.3.1.9, and have said report approved by the Supervisor
for receiving, paying and custody of money.
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ch26_finance-and-accounting_en_20240101_cl26.3.1.10.1 After approving a Petty Cash Receipts and Payments Reportspecified in 26.3.1.10, the Supervisor for receiving, paying and custody of money
must present the report and a copy of the Petty Cash Ledger to the Accounting
Supervisor, together with a request for funds for the subsequent month.
26.3.1.11 Termination of Petty Cash
When the Accounting Supervisor determines that the maintenance of petty cash is
no longer necessary, the Accounting Supervisor must report this determination
promptly to the Secretary General for approval.
26.3.1.11.1 If the Secretary General approves discontinuance of Petty Cash, the
Accounting Supervisor must require the Supervisor for receiving, paying andcustody of money to carry out termination procedures.
26.3.1.11.2 The Accounting Supervisor must report to the Secretary Generalwhen the termination of Petty Cash is accomplished.
26.3.1.12 Supervision and Inspection of Petty Cash
The Supervisor for receiving, paying and custody of money must carry out therequired supervision and inspection work to secure appropriate accounting ofpetty cash.
26.3.1.13 Procedures for Receiving and Paying Money
The Supervisor for receiving, paying and custody of money shall receive or pay
money in accordance with a voucher created based on necessary evidential
documents.
26.3.1.14 Occurrence of Receivables
In any event that creates receivable claims occurs, the Accounting Supervisor shallconfirm the occurrence of receivables and request the obligor to perform theobligation.
26.3.1.15 Notice of Receivables
Accrual of receivables contributing to revenue known to personnel other than the
Accounting Supervisor must be reported in writing to the Accounting Supervisor
accordingly.
26.3.1.16 Call for Performance of Obligation
The Accounting Supervisor must issue the billing statements for collection of
payments as in the appendix. However, this rule shall not be applicable to cases
stated in the following:(1) When sending by postal service or passing in person the transfer request inadvance (for expenses such as dissertation course fee and tuition for classes)(2) When payment is made in cash(3) When the Accounting Supervisor specifically recognizes the omission as6
ch26_finance-and-accounting_en_20240101_clnecessary
26.3.1.17 Receipt of Payment
The payment must be in principle transferred to the relevant bank for theSupervisor for receiving, paying and custody of money to receive it. However,payment can be made otherwise including cash payments if authorized by the
Accounting Supervisor as a job-related necessity.
26.3.1.17.1 The Supervisor for receiving, paying and custody of money must
deposit the cash received in the relevant bank under the proviso as stated in thepreceding section swiftly unless specifically authorized by the Accounting
Supervisor.
26.3.1.18 Collection Notice
The Accounting Supervisor shall send a collection notice to an obligor of any
overdue payment immediately after such payment becomes due and payable andensure the receipt of any payment.
26.3.1.19 Debt Forgiveness
The Accounting Supervisor shall obtain the approval of the Secretary General for
any forgiveness or change of effect of any receivables in whole or in part, other thanimportant assets.
26.3.1.20 Issuance of Receipts
The Supervisor for receiving, paying and custody of money shall issue a receipt ina separately prescribed form for any money received.
26.3.1.20.1 If any money is received through a direct deposit to a financial
institution, etc., the issuance of a receipt prescribed in 26.3.1.20 may be omitted.
26.3.1.20.2 The issuance and management of receipts shall be strictly made.
26.3.1.20.3 Receipts shall be stamped with both stamps of the Supervisor forreceiving, paying and custody of money and the Cashier.
26.3.1.20.4 For re-issuance, the payment receipt must be confirmed byaccounting slip marked with “REISSUE”, the copy of which to be filed together
with the copy of the confirmation slip that verifies the receipt.
26.3.1.21 Receipt Management
The Supervisor for receiving, paying and custody of money shall be in charge ofmanaging receipts.
26.3.1.21.1 The Supervisor for receiving, paying and custody of money must
manage receipts by sequence number in the receipt-payment books.
7ch26_finance-and-accounting_en_20240101_cl26.3.1.22 Determination of Payment
The Accounting Supervisor shall be aware of all obligations through the inspection,etc., and order the Supervisor for receiving, paying and custody of money to makea payment in accordance with the relevant payment terms.
26.3.1.23 Method of Payment
The Supervisor for receiving, paying and custody of money shall make a payment,
in principle, by a direct deposit to a financial institution, etc. Notwithstanding theforegoing, a payment may be made by handing out cash if necessary, including in
the case of payment to a staff and a petty cash payment.
26.3.1.23.1 The Supervisor for receiving, paying and custody of money shallcollect a receipt for any payment. If the payment is made by a direct deposit, thebank deposit slip may suffice in lieu of a receipt.
26.3.1.24 Date of Payment
Payment shall be in principle made monthly with the closing date at the end of themonth and settlement at the end of the subsequent month unless otherwise
specified. However, the following shall be paid on the set date:(1) Payroll(2) Travel expenses, honoraria and rewards(3) Utilities with due date, foreign remittance, etc.
(4) Travel expenses and honoraria for foreign lecturers and speechmakers
26.3.1.24.1 The payment shall be made on the previous business day if the dateof payment stated in the preceding section does not fall on a business day of therelevant banking institution.
26.3.1.25 Receipt Collection Duty of Proxy Receiver
The personnel receiving the payment on behalf of the creditor must obtain receipt
from the creditor, which must be submitted to the Accounting Supervisor.
26.3.1.26 Money in Custody, etc.
The Accounting Supervisor shall process any money received or paid by theSupervisor for receiving, paying and custody of money that shall not fall under any
income or expenditure of the Corporation as money in custody or payment in placeof others. In principle, no money in custody shall bear any interest.
26.3.1.27 Advance Payment
An advance payment may be made only in the case separately stipulated by VPF,,
if necessary due to the nature of the payment or for business purposes [Link:
Guidelines for Advance Payment and Payment on behalf of Corporation].
26.3.1.28 Payment by Rough Estimate
A payment by rough estimate may be made only in the case separately stipulated,8
ch26_finance-and-accounting_en_20240101_clif necessary due to the nature of the payment or for business purposes. The
expenses for which payment can be made by estimate are as follows:(1) Expenses for oversea travel(2) Expenses specifically authorized as necessary by the Accounting Supervisor
The expenses paid by estimate must be promptly settled.
26.3.1.29 Payment on behalf of Corporation
Any staff of the Corporation or Research Fellows specified in 4.4.1 may makepayment on behalf of the Corporation only in the case separately stipulated by VPF,
if necessary for business purposes [Link: Guidelines for Advance Payment andPayment on behalf of Corporation].
The advance payment must be promptly settled.
Exchange rate for settlement applies to our internal exchange rate of preceding
month [Link].
26.3.1.30 Immediate payment
Immediate payment may be made only in the cases stipulated separately by VPF,
if necessary due to the nature of the payment or for business purposes. [Link:
Guidelines for Immediate Payment]
26.3.1.31 Checking of Money
The Supervisor for receiving, paying and custody of money shall check the amountof cash in hand against the cashbook at the end of each month, and the balance ofbank deposit, etc., against relevant accounting book at the end of each month.
26.3.1.32 Excess and Deficiency of Money
If any excess or deficiency of money is found, the Supervisor for receiving, paying
and custody of money shall immediately investigate into the cause, report it to the
Accounting Supervisor, and follow his or her instructions.
26.3.2 Funds“Funds” shall mean any cash, deposits and securities that may be used for a payment.
26.3.2.1 Commission of Management of Funds
The management of funds shall be performed by the Vice President for Financial
Management.
26.3.2.2 Short-term Loans
The Vice President for Financial Management may raise money to cover any
temporary shortage of funds by obtaining short-term loans based on the approval
granted by the CEO/President and the Secretary General.
26.3.2.2.1 The Vice President for Financial Management shall, in principle,
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compile a cash flow projection under which any short-term loan may be paidback within the same fiscal year.
26.3.2.3 Long-term Loans
The Corporation shall receive approval from Prime Minister when borrowing
funds with a payment period exceeding one year as stipulated in Article 10 of
Okinawa Institute of Science and Technology School Corporation Act [Link].
26.3.3 Fixed Assets
Fixed assets shall include tangible fixed assets, intangible fixed assets, investments
and other assets. With regard to Fixed Assets, the terms and definitions below areapplicable:(1) Real estate: Land, buildings, structures, and usufructs(2) Movable property etc.: Small-sum equipment, fixed assets other thanintellectual property rights and real estate etc., and books (Books managed as
fixed assets, based on the Accounting Standard [Link] Article 42 of the
University, shall be defined as the collection of the Library of the Okinawa
Institute of Science and Technology Graduate University ("the Library") which
acquired and managed by the Library.)(3) Acquisition: Ownership or exclusive use of fixed assets and small-sum
equipment (hereinafter referred to as “fixed assets etc.”) from purchase,manufacturing, self- construction, donation, exchange, contribution, etc.
(4) Improvement: Implementing the necessary works for the operations of existing
fixed assets to increase their value and performance(5) Conservation: Appropriately maintaining fixed assets etc. in accordance with
their purposes of use(6) Transfer: Shifting the control of fixed assets etc. among Asset Use Supervisors(7) Disposition: Selling, exchanging, disposing or donating fixed assets etc.
(8) Removal: Erasing the records of fixed assets etc. that have been disposed
26.3.3.1 Asset Management Supervisor“Asset management” shall mean proper management of tangible and intangible
fixed assets including acquisition, operation and disposition thereof throughunderstanding the processes and conditions of receipt, payment and maintenancethereof.
26.3.3.1.1 The Asset Management Supervisor shall prepare the asset
management ledger, execute the asset management, and make efforts to utilize
assets in the most effective way for researches.
26.3.3.1.2 The manager in charge of asset management in the Accounting
Section shall serve as the Asset Management Supervisor.
26.3.3.1.3 The Asset Management Supervisor may cause any other staff(s) to10
ch26_finance-and-accounting_en_20240101_clhandle any part of his or her business.
26.3.3.1.4 In the event that the Asset Management Supervisor is unable to act,a person designated by the Vice President for Financial Management shall act on
his or her behalf.
26.3.3.2 Fixed Assets Etc. Management Works
The Asset Management Supervisor shall conduct the following works concerning
the management of fixed assets. (Asset management of books shall be governed by
the PRP Chapter 6. University Library [Link].)(1) Grasping the usage conditions of fixed assets etc.
(2) Procedure of permission for the lending and disposition of fixed assets(3) Arranging Asset Management Ledgers(4) Giving instructions and advice regarding the daily management of fixed assetsetc.
(5) Having Asset Use Supervisors specified in 26.3.3.3 inspect fixed assets eachfiscal year, and summarizing the findings.
26.3.3.3 Asset Use Supervisors
The Asset Management Unit is defined as the Research Unit, Section, Division or
Office within the OIST School Corporation.
Asset Use Supervisors shall be the Faculty member for fixed assets in each research
unit, Section Leader for fixed assets in each section, and Manager or a person in
an equivalent position or above for fixed assets in each Division or Office(excluding fixed assets that are supervised by Section Leaders), except forfollowing items.
(1) Asset Use Supervisor for the fixed assets etc. which are placed at shared spacefor common use is as follows.
① Furniture (Lab benches, Furniture, Shelves, etc.): The appropriate Section
Leader of Buildings and Facilities Management Division② Research Equipment (including refrigerators for research): appropriate
Section Leader of the Core Facilities.
(2) Asset Use Supervisor for the fixed assets etc. which are not yet occupied by
specific users or were used by closed research units and until a new user isfound is as follows.
① Furniture (Lab benches, Furniture, Shelves, etc.): The budget appropriate
Section Leader of Buildings and Facilities Management Division② Research Equipment (including refrigerators for research): The appropriate
Section Leader of the Core Facilities③ IT fixed assets etc.: The appropriate Section Leader of office of the IT
Division(3) Assets Use Supervisors for IT fixed assets, etc. shall be primarily Faculty
member in each research unit, Section Leader in each section, and Manager ora person in an equivalent position or above in each Division or Office where he11
ch26_finance-and-accounting_en_20240101_cl

IT fixed assets were purchased or transferred. (Asset management of IT fixed
assets etc. shall be governed by the PRP Chapter 17. Information Technology
and Security [Link].)
26.3.3.3.1 Asset Use Supervisors shall receive fixed assets etc. from the AssetManagement Supervisor and work to have them used effectively in research
activities etc.
26.3.3.3.2 Asset Use Supervisors must observe the following items in the use of
fixed assets etc. in implementing their daily management.
(1) Clarify their conservation and usage conditions by using the asset
management list(2) Carry out minor repairs(3) Devise the necessary measures to prevent fires, theft, loss, damage andother incidents(4) Carry out inspections of fixed assets etc. and report findings(5) Ensure the appropriate use of fixed assets etc.
26.3.3.4 Obligations of Fixed Asset Users
Fixed asset users must use fixed assets etc. under the management and supervisionof Asset Use Supervisors and treat them with care as good stewards.
26.3.3.5 Asset Management Ledgers
The asset management ledgers specified in 26.3.3.2 shall be as follows:(1) Fixed asset ledger(2) Loan ledger(3) Borrow ledger
26.3.3.5.1 Fixed asset ledgers must be recorded under the categories specified
in Appended table.
26.3.3.6 Acquisition and Recording in the Fixed Asset Ledger
When fixed assets etc. are acquired, the Asset Management Supervisor mustrecord said assets etc. in the fixed asset ledger.
Provided, however, that if fixed assets are thrown in the ocean for marine
observation on the basis that they are not intended to be salvaged because of itsdifficulty, the fixed assets are treated as consumables.
26.3.3.6.1 When movable property etc. is acquired, the Asset Management
Supervisor hands over identification labels to Asset Use Supervisor afterrecording said property in the fixed asset ledger. Asset Use Supervisor must
promptly attach identification labels to the acquired movable property etc.
26.3.3.7 Acquisition Prices
The acquisition prices of fixed assets etc. shall be as follows:
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(1) For purchased assets, the purchase price and incidental expenses(2) For self-constructed assets, the overall cost calculated as the sum of the proper
cost prices(3) For items donated or contributed, the fair assessed price based on market
value, etc.
(4) For items acquired through exchanges, the book value of the assets given in
exchange
26.3.3.8 Receipts of Donations and Exchanges
Receipts of donations and exchanges of fixed assets etc. must follow the prescribed
procedures.
26.3.3.9 Repairs
The Asset Use Supervisor must conduct repairs that are necessary to maintain thefunctions of the concerned fixed assets.
26.3.3.10 Preservation of Rights
The Asset Management Supervisor must promptly register land, buildings andother fixed assets that require registrations etc. promptly after acquisition inaccordance with the stipulations of the concerned laws to protect them from third
parties.
26.3.3.10.1 The Asset Management Supervisor must implement the prescribedchange procedures without delay whenever any changes arise to the items
recorded in the registrations etc. specified in 26.3.3.10.
26.3.3.11 Insurance
The Asset Management Supervisor must consider securing property insurance andother necessary measures when deemed necessary for fixed assets subject toaccidents and other damages.
26.3.3.12 Usage
Asset Use Supervisors must always know who are the users of fixed assets etc.
26.3.3.13 Transfer
When fixed assets etc. is necessary for transfer, current Asset Use Supervisor of the
fixed assets etc. must consult with next Asset Use Supervisor on the transfer. The
former Asset Use Supervisor must promptly apply for the transfer request to AssetManagement Supervisor after the fixed assets etc. is transferred to the later Asset
Use Supervisor. Asset Management Supervisor must record the fixed assets etc. in
the fixed assets ledger after receiving the transfer request.
26.3.3.14 Lending
When the lending of fixed assets, etc. is deemed necessary and this does notinterfere with the works of the Corporation, the Accounting Supervisor may loan
13ch26_finance-and-accounting_en_20240101_clthe fixed assets, etc. to other parties in accordance with the following procedures.
26.3.3.14.1 The lending of important assets requires the approval of
CEO/President.
26.3.3.14.2 Lending Principles
Lending should be conducted with payment (hereinafter referred to as “paidlending”). However, lending may be conducted without payment (hereinafterreferred to as “gratis lending”) with the approval same as the provisions of
26.3.3.14 or 26.3.14.1 in any of the following cases(1) When necessary for dissemination of public information regarding the
Corporation’s research findings or business, or otherwise necessary for the
execution of the Corporation’s business(2) When lending fixed assets to national or regional public bodies, non-profit
foundations, or corporations established under special acts, provided thisdoes not interfere with the business of the Corporation(3) When lending fixed assets to universities and other research andeducational organizations, provided this does not interfere with thebusiness of the Corporation.
26.3.3.14.3 Lending Procedures
When lending fixed assets under the provisions of 26.3.3.14 or 26.3.3.14.1, theAsset Management Supervisor must clarify the following items and devise thenecessary measures for the loans.
(1) Reason for lending and name of borrowing institution(2) Names and numbers of fixed assets being loaned(3) Specifications of fixed assets being loaned(4) Loan periods(5) Places of use and names of borrowers of fixed assets being loaned(6) Liability during loan period(7) Other necessary items
However, these procedures may be omitted for items whose lending is clarified
beforehand under sponsored research agreements.
26.3.3.15 Disposition
When the Asset Management Supervisor receives fixed assets etc. returned by
Asset Use Supervisors, the Asset Management Supervisor must consider theusability of the said fixed assets, etc. for others also examine the necessity ofdisposition.
26.3.3.15.1 Unnecessary important assets which the Asset Use Supervisors
deem to be of no effective use (hereinafter referred to as “determined
unnecessary”) may be determined as unnecessary by the approval of the
CEO/President. Unnecessary fixed assets, etc. aside from important assets may
be determined as unnecessary by the Accounting Supervisor.
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ch26_finance-and-accounting_en_20240101_cl26.3.3.15.2 The disposition of important assets must obtain an approval fromthe CEO/President. The disposition of fixed assets etc. aside from important
assets must obtain an approval from the Accounting Supervisor.
26.3.3.15.3 Disposition Principles
The Asset Management Supervisor must sell off fixed assets that have been
determined unnecessary under the provisions of 26.3.3.15.1. However, items
that cannot be sold off may be disposed.
26.3.3.16 Loss, Damage and Theft
When Asset Use Supervisors discover that fixed assets etc. under their custody
have been lost, damaged or stolen, they must promptly report to the AssetManagement Supervisor, investigate the present conditions, and work to prevent
impediments to the conduct of business, the expansion of damages, etc.
23.3.3.16.1 When the Asset Management Supervisor receives reports regarding
fixed assets etc. specified in 26.3.3.16, the Asset Management Supervisor must
promptly report to the Accounting Supervisor.
26.3.3.17 Sale
The Asset Management Supervisor must devise the necessary measures for
conducting sales under the provisions of 26.3.3.15.3.
26.3.3.18 Gratis Ownership Transfer
Although in principle the provisions of 26.3.3.15.3 apply in general, the AssetManagement Supervisor may transfer the ownership of fixed assets (excluding any
important asset specified by Cabinet Office Ordinance) determined unnecessary
under the provisions of 26.3.3.15.1, to institutions, organizations or individuals
without compensation (hereinafter referred to as “gratis ownership transfer”),
with the permission of the Accounting Supervisor, under any of the following
circumstances. However, gratis ownership transfer requires the approval of the
CEO/President if the fixed assets are important assets.
(1) When necessary for dissemination of public information regarding the
Corporation’s research findings or business, or otherwise necessary for the
execution of the Corporation’s business(2) When transferring ownership of fixed assets to national or regional publicbodies, non-profit foundations, or corporations established under special acts
(3) When transferring ownership of fixed assets to relevant local bodies for the
purpose of enhancing the relationships with OIST and the local community(4) When transferring ownership of fixed assets to universities and other researchand educational organizations(5) When the removal costs clearly exceed the fixed assets’ value(6) When OIST students need to use the fixed assets for academic research after
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graduation
26.3.3.19 Removal
The Asset Management Supervisor must promptly remove fixed assets etc. under
the following circumstances;(1) When they are lost from accidents, theft, etc.
(2) When they have been disposed of and their ownership rights are terminated;or(3) When their use has ceased because they have become outdated orinappropriate.
26.3.3.20 Construction in Progress AccountExpenditures on facilities that are newly constructed, expanded or improved underconstruction contracts shall be recorded in the construction in progress account,and then transferred to the appropriate accounts without delay once they areprovided for the conduct of business.
26.3.3.21 Capital Expenditures and Repair Expenses
Expenditures to improve the functions or extend the working lives of fixed assets
shall be added to the price of the concerned fixed assets.
26.3.3.21.1 Expenditures to maintain and conserve fixed assets shall be handled
as repair expenses.
26.3.3.22 Depreciation
Depreciation of any tangible and intangible fixed assets shall be calculated eachfiscal year.
26.3.3.22.1 Depreciation Method
The initial month for the depreciation of depreciable fixed assets shall be themonth in which said assets are acquired and begin to be used.
1. Depreciable assets shall be depreciated using the straight- line method.
2. The residual value of tangible fixed assets shall be 1 yen of memorandum
price of the acquisition price, and the residual value of intangible fixed assets
shall be zero.
3. The service life which is the basis for the depreciation shall be as specified by
the Corporation Tax Law (Law No. 34 of 1965). However, the service life ofdepreciable assets acquired for special research purposes under sponsoredresearch budgets etc. shall be the period until the sponsored research iscompleted. The service life of depreciable assets acquired through the
donation of used assets etc. shall be calculated using the simplified method
stipulated by the Ministerial Ordinance on the Service Life Etc. of Depreciable
Assets (Ministry of Finance Ordinance No. 15 of March 31, 1965).
4. The accounting of other items not specified above shall be in accordance withlaws and regulations, etc.
16ch26_finance-and-accounting_en_20240101_cl26.3.3.23 Valuation Losses
Extraordinary depreciation must be charged in cases when the functional value of
fixed assets is conspicuously impaired because of the discovery of new technologies
or other external developments that could not be foreseen when their service lives
were estimated.
26.3.3.23.1 In cases when fixed assets are destroyed due to accidental events
such as disasters and other incidents, the amount of the lost value must be
deducted from the concerned assets’ book value.
26.3.3.24 Report by Asset Management Supervisor
The Asset Management Supervisor shall, at each account settlement, reportaccounting information regarding fixed assets to the Accounting Supervisor.
26.3.3.25 Inspections
Asset Use Supervisors must inspect the conditions of tangible fixed assets in theircustody once every fiscal year, confirm that their management conditions andledger records are accurate, and report to the Asset Management Supervisor.
26.3.3.25.1 Regardless of the stipulations of 26.3.3.25, when the location of theassets, etc. is changed by moving of office or research laboratory or wheneverdeemed necessary the Asset Management Supervisor may instruct Asset Use
Supervisors to implement inspections and submit reports.
26.3.3.25.2 When Asset Use Supervisors recognize any discrepancies between
assets and their ledger records, they must investigate the causes of said
discrepancies, report to the Asset Manager, devise countermeasures to address
the cause of the discrepancies, and work to prevent recurrence.
26.3.3.26 Borrowed Assets
The Corporation must prepare management ledgers and otherwise handle
borrowed assets in the same manner as fixed assets. However, this may be omitted
in cases when assets are borrowed for temporary use.
26.3.3.26.1 Asset Use Managers must promptly report to the AssetManagement supervisor when they borrow fixed assets etc.
26.3.3.27 Small-sum Equipment
The small-sum equipment shall mean movable property (excluding cash andsecurities) with an acquisition price of at least ¥100,000 and less than ¥500,000
that is expected to be used for at least one year.
26.3.3.28 High Liquidity Consumables
Among movable properties with acquisition prices of less than 100,000 JPY, those17
ch26_finance-and-accounting_en_20240101_clconsidered to have high liquidity (hereafter, “High Liquidity Consumables”)
require more appropriate management and use, in order to prevent misconduct.
The Vice President for Financial Management shall separately specify the items
and management procedure of High Liquidity Consumables. [Link]
26.3.4 Inventory Assets“Inventory assets” shall mean publications (printed material), research materials
and inventories of merchandise and supplies.
26.3.4.1 Management of Inventory Assets
Budget supervisors [Link: 27.4.4] shall prepare inventory asset management
ledgers, record receipts and payments of such assets, and make clear the inventory
balance at all times.
26.3.4.2 Physical Inventory Check and Report
Budget supervisors [Link: 27.4.4] shall conduct a physical inventory check at theend of each fiscal year and report the result to the Accounting Supervisor.
26.3.5 Account Settlement
The purpose of account settlement is to clarify the financial conditions andadministrative performance at the end of each fiscal year through organizing
accounting records of the fiscal year.
26.3.5.1 Monthly Settlement of Accounts
To clarify monthly financial conditions, the Accounting Supervisor shall create thedocuments prescribed by 26.3.5.2.
26.3.5.2 Monthly Report
The documents stipulated in 26.3.5.1shall be those stated in the following:(1) Compound trial balance(2) Documents required to be submitted to the Board of Audit in accordance with
Article 69 of the Accounting Proof Rules (Board of Audit Ordinance No. 3 ofJune 7, 1952)
26.3.5.3 Monthly Settlement of Accounts
The Accounting Supervisor must execute the steps stated in the following toprepare the monthly report stipulated in 26.3.5.1.
(1) Collating the compound trial balance and the Table of Budget Use Status(2) Validation of details of receivables, payables, and suspense account(3) Collating the fixed asset books and the fixed asset account ledger
26.3.5.4 Yearly Settlement of Accounts
The Accounting Supervisor shall perform required procedures for the yearly
settlement of accounts, compile drafts of financial statements, etc. as prescribedby the Okinawa Institute of Science and Technology Act, and report them to the18
ch26_finance-and-accounting_en_20240101_cl

CEO/President.
26.3.5.4.1 The CEO/President shall determine such financial statements.
26.3.5.5 Financial Statements, etc.
The CEO/President shall submit to the Prime Minister the financial statements,
etc., prescribed in 26.3.5.4 along with the Auditor's opinions within three (3)months after the closing of each fiscal year.
26.3.6 Compensation Liability
Officers and staffs of the Corporation (“officers and staffs”) shall comply with thelaws and ordinances that are applied (mutatis mutandis) to the financial andaccounting affairs of the Corporation and these Regulations, and perform theirduties with the care of a good manager.
26.3.6.1 In the event that any officer or staff causes, either intentionally or bygross negligence, any damages to the Corporation in violation of 26.3.6, the officer
or the staff causing such damages shall be liable to compensate such damages.
26.3.6.2 Report of Loss, etc.
Any loss or extinguishment of or damage to any of the Corporation’s money,
securities, fixed assets or any other assets shall be reported to the CEO/President,
by the officer causing such damages if such damages are caused by an officer, orby the head of the department to which the staff causing such damages belongs ifsuch damages are caused by a staff.
26.3.6.3 Determination of Compensation Liability and Compensation Order
The CEO/President shall determine the existence or non-existence of liability tocompensate under 26.3.6.1 and 26.3.6.2 hereof and the amount thereof.
26.3.7 Corporate Credit Cards
In principle, the University makes payments for domestic transactions by banktransfer after delivery of goods or completion of services, in order to minimize therisk in trading. However, for cases where there is no other option but to pay by credit
card, a corporate credit card can be used. In addition, corporate credit card can also
be used for overseas remittance in compliance with the University rules even when
the option of bank transfer is available.
26.3.7.1 Types of Corporate Credit Cards
The University has three types of corporate credit cards: central corporate card,
purchasing cards (P-cards), and individual corporate cards. Major features of eachcard type are summarized in the Table I below.
Table I: Major Features of OIST Corporate Credit Cards＜See attached＞
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ch26_finance-and-accounting_en_20240101_cl26.3.7.2 Card Administrator
In order to administer appropriate usage of corporate credit cards, the University
assigns one card administrator to each card type as follows.
Card type

CentralCorporate Card

P-cardIndividual
Corporate Card

Card
Administrator

VPFM

VPFM

VPFM

26.3.7.3 Card User and Card Supervisor
University officer/staff eligible to use a corporate credit card (card user) and thoseeligible to supervise the usage (card supervisor) are defined by card type in thefollowing table.
Card type

CentralCorporate Card

P-cardIndividual
Corporate Card

Card User

Division for
Financial
Management staff

Staff different from,and assigned by, thecard supervisor

President

Card
Supervisor

Division for
Financial
Management
Manager

Budget supervisor(VP level) or budget
holder (Faculty,
Section leader level)

Same as above

26.3.7.4 Application and Issuance of Corporate Credit Card
Card applications must be completed by the card supervisor and submitted to therelevant card administrator. For P-card applications by an AVP or Section Leader,
approval of the relevant budget supervisor (VP level) is required upon application.
The card administrator reviews applications for a corporate credit card andapproves or rejects. If approved, a corporate credit card will be issued anddelivered after the card supervisor has completed the appropriate training on
corporate credit card usage, responsibilities, and accountability associated withthe corporate credit card (Exception: central corporate card).
26.3.7.5 Corporate Credit Card Use Workflow
Card supervisors of a corporate credit card must use the card by following theworkflow defined separately [Link].
26.3.7.6 Uses Allowed and Not Allowed
Corporate credit card usage is strictly limited to regular university-related businesspurchases and strictly prohibited for personal expenses and business expenses
comingled with non-business expenses. Purchases must be approved in the ERP20
ch26_finance-and-accounting_en_20240101_clsystem prior to the transaction.
Central corporate card can be used upon request by a Unit/Section. In principle,
the P-card and Individual Corporate Card Guideline [Link] applies regarding uses
allowed with a corporate credit card. However, when it is not practical to apply theabove Guideline, central corporate card can be used for transactions specificallyauthorized as necessary by the Accounting Supervisor or the person to whom the
Accounting Supervisor delegates central corporate card related duties.
For P-cards and individual corporate cards, uses allowed and not allowed aredetailed in the P-card and Individual Corporate Card Guideline [Link]. In case of
doubt, the card supervisor should confirm the eligibility of the transaction withstaff in charge in the Division for Financial Management.
26.3.7.7 Responsibility
26.3.7.7.1 Card Administrator
The card administrator is responsible for overall administration of the relevant
corporate credit cards (such as reviewing card applications, approving corporate
credit card issuance, and terminating corporate credit cards) and monitoring of
the compliance with policies, rules and procedures. In case of misuse, the card
administrator will respond in accordance with Chapter 26.3.7.8. The card
administrator is responsible for developing, updating, and administering
relevant guidelines.
26.3.7.7.2 Card Supervisor of P-cards and Individual Corporate Cards
The card supervisors of P-cards and individual corporate cards shall understandthat expenses paid with the corporate credit card will be invoiced directly to the
University account and that irregular use of these corporate credit cards brings
an audit and financial risk to the University. It is the card supervisor’s
responsibility to ensure the corporate credit card is used in compliance with PRP
Chapters 26 through 29 and respective Guidelines for Corporate Credit Cards
provided separately.
The card supervisors must reconcile all transactions with an approved Purchase
Order number (PO#) and submit required documents by the deadline set in theworkflow [Link]. The card supervisors must make sure all ordered goods andservices are delivered by the end of the fiscal year by carefully monitoring thedelivery status.
The University will hold the card supervisor fully responsible for all
unauthorized transactions (See 26.3.7.6 Uses Allowed and Not Allowed),transactions followed by non-delivery of ordered items or services, andtransactions without appropriate reconciliation with an approved Purchase
Order number (PO#) by the document submission deadline.
26.3.7.7.3 Card User
The card user must carefully handle and store the card information. The card
information should not be posted, emailed or visible in any place that isaccessible by others. The card user may not share the card information with
21
ch26_finance-and-accounting_en_20240101_clanyone else.
26.3.7.8 Misuse of Corporate Credit Card
Misuse of a corporate credit card (See the P-card and Individual Corporate Card
Guideline [Link]), intentional or accidental, is a violation of the University PRP(See also Chapters 28.2.3 and 29.1). In case of misuse, the card administrator will
issue a warning and may decide suspension of the corporate credit card. It may
result in other disciplinary action depending on the seriousness of the violation, in
accordance with PRP 38 “Discipline”.
26.3.7.9 Lost or Stolen Corporate Credit Card
If a corporate credit card or card information is lost or stolen, the card supervisor
shall immediately notify the card administrator, the card issuer, and the local
police.
26.3.7.10 Returning P-card Information and Individual Corporate Cards Cardsupervisors of P-cards and individual corporate cards must return the corporate
credit card to the card issuer via the card administrator when:
26.3.7.10.1 The card supervisor leaves the University.
26.3.7.10.2 The card user of the P-card moves to another position in the
University.
26.3.7.10.3 The University or the card issuer requests.
26.3.7.11 Cancellation of Corporate Credit Card
Corporate credit cards may be terminated at any time by the University.
26.3.8 Miscellaneous Provisions
26.3.8.1 Restatement of accounts
OIST may, on its own decision, prepare financial statements based oninternationally recognized accounting standard in addition to the ones based on
OIST regular accounting standards, in order to facilitate its understanding byinternational donors or provider of funds and increase accountability andtransparency. These restatements would be controlled by accounting auditors.
26.3.9 Storage of Documents
Accounting books, vouchers and documents shall be stored for the following period:(1) financial statements, etc. = permanently(2) general ledger = 30 years(3) other accounting books = 10 years(4) slips and vouchers = 10 years
26.4 Responsibilities

22
ch26_finance-and-accounting_en_20240101_cl26.5 Procedures
26.6 Forms
26.7 Contacts
26.7.1 Policy Owner: Vice President for Financial Management
26.7.2 Other Contacts: Division for Financial Management
26.8 Definitions
26.9 Appendices & Table
Appendices & Table [Link]

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