California Code of Regulations › Title 5 - Education › Division 6 - California Community Colleges › Chapter 9 - Fiscal Support › Subchapter 4 - Budgets and Reports › Section 58311 - Principles for Sound Fiscal Management

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In any organization certain principles, when present and
					 followed, promote an environment for growth, productivity, self-actualization,
					 and progress. The following principles shall serve as the foundation for sound
					 fiscal management in community college districts:
1. Each district shall be responsible for the
				  ongoing fiscal stability of the district through the responsible stewardship of
				  available resources.
2. Each
				  district will adequately safeguard and manage district assets to ensure the
				  ongoing effective operations of the district. Management will maintain adequate
				  cash reserves, implement and maintain effective internal controls, determine
				  sources of revenues prior to making short-term and long-term commitments, and
				  establish a plan for the repair and replacement of equipment and
				  facilities.
3. District personnel
				  practices will be consistent with legal requirements, make the most effective
				  use of available human resources, and ensure that staffing costs do not exceed
				  estimates of available financial resources.
4. Each district will adopt policies to
				  ensure that all auxiliary activities that have a fiscal impact on the district
				  comport with the educational objectives of the institution and comply with
				  sound accounting and budgeting principles, public disclosures, and annual
				  independent audit requirements.
5.
				  Each district's organizational structure will incorporate a clear delineation
				  of fiscal responsibilities and establish staff accountability.
6. Appropriate district administrators will
				  keep the governing board current on the fiscal condition of the district as an
				  integral part of the policy- and decision-making processes.
7. Each district will effectively develop and
				  communicate fiscal policies, objectives, procedures, and constraints to the
				  governing board, staff, and students.
8. Each district will have an adequate
				  management information system that provides timely, accurate, and reliable
				  fiscal information to appropriate staff for planning, decisionmaking, and
				  budgetary control.
9. Each district
				  will adhere to appropriate fiscal policies and procedures and have adequate
				  controls to ensure that established fiscal objectives are met.
10. District management will have a process
				  to evaluate significant changes in the fiscal environment and make necessary,
				  timely, financial and educational adjustments.
11. District financial planning will include
				  both short-term and long-term goals and objectives, and broad-based input, and
				  will be coordinated with district educational planning.
12. Each district's capital outlay budget
				  will be consistent with its five-year plan and reflect regional planning and
				  needs assessments.
To the extent that the foregoing principles repeat or
					 paraphrase mandates already in existence, these underlying mandates shall
					 continue to be legally binding. Otherwise, these principles, by themselves,
					 shall be applied to the extent that existing state and district funding is
					 available.
1. New
					 section filed 10-5-93; operative 11-4-93. Submitted to OAL for printing only
					 pursuant to Education Code section
					 70901.5(b)
					 (Register 93, No. 42).
2. Change without regulatory effect amending
					 NOTE filed 9-14-2004 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2004, No. 39).
Note: Authority cited: Sections
						66700,
						70901 and
						84040,
						Education Code. Reference: Section
						70901,
						Education Code.