Policy and Procedure Business Affairs
6.1 Use of State Property
The use of state property and/or equipment for personal gain is not permitted according to state statutes. Any individual who becomes aware of such activity is required to report such activity to the appropriate Vice President.
CVCC students and employees may utilize certain bulletin boards designated by the President (or designee) to advertise the sale of used personal items. The President (or designee) shall establish procedures and guidelines for such usage.
» 6.1 Use of State Property Procedure - Bulletin Boards
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6.2 Use of CVCC Facilities (including multipurpose fields) Approval, Fees, Appropriate Use
CVCC and CVCC-sponsored activities shall receive first priority in the reserving of CVCC facilities in most cases. When facilities are available, CVCC welcomes use by community groups and organizations. Certain facilities specified by the President or designee may be used by students, faculty, staff, and others in accordance with the CVCC Policy #4.4 regarding Free Speech, Public Assembly, and Distribution/Petitioning.
Scheduling of CVCC facilities will be done on a first-come, first-serve basis after CVCC and CVCC-sponsored activities are scheduled. CVCC does not discriminate on the basis of race, religion, color, creed, national origin, sex, age, or disability. Approval to use College facilities is not an endorsement by CVCC of the user’s organization or group. CVCC reserves the right to deny usage to any group or organization if there is reason to believe that such use would interfere with CVCC’s educational mission, operations, or functions.
Each group, organization, or individual desiring to use the facilities must obtain approval for usage in accordance with timelines and procedures established by the Chief Financial Officer or designee. CVCC facilities may be used only for purposes approved in accordance with these established procedures. CVCC reserves the right to change assigned facilities/rooms or cancel a reservation if an emergency or urgent need justifies such a change. Every effort will be made to suitably accommodate the affected group should such a situation arise. An agreement for use of facilities may not be transferred or assigned to any other person or agency without the consent of CVCC.
» 6.2 Regulation Regarding Use of College Facilities Procedure
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6.2.1 Vending Concessions Activities
In accordance with 115D-58.13 for the budgeting, accounting and expenditure of funds generated through vending machines and other concession activities, funds shall be deposited into an unrestricted institutional account and may be used as follows:
- Support the operating expenses of the vending machines
- Student aid and/or scholarships
- Recruitment and retention
- Employee of the year awards
- Expenditures of direct benefit to students
- Other expenditures authorized by the President and/or Senior Vice President that support the mission and growth of the College.
All expenditures shall be consistent with the mission and purpose of Catawba Valley Community College.
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6.3 Foreign Nationals Compliance Policy
Introduction
Catawba Valley Community College (CVCC) has the responsibility of withholding and reporting payments to foreign nationals (employees, contractors, vendors and students) in accordance with the IRS Code Regulations Section 1441 and with policies established by the Office of the State Controller.
It is the responsibility of CVCC to gather all data for each individual who is to be tracked through the Windstar (Tax Navigator) software and forward it to the North Carolina Community College System (NCCCS) using the Foreign National Information System (FNIS) Data Gathering Form.
Definition
A foreign national is "a person who was born outside the jurisdiction of the United States, is a citizen of a foreign country, and has not become a naturalized United States citizen under United States law. This includes legal permanent residents; also known as permanent resident aliens."
Policy
The reporting and withholding of taxes associated with payments made to non-US citizens by universities, community colleges, and other agencies of the State of North Carolina are in accordance with the laws and regulations of the US Citizenship and Immigration Services (USCIS) and the Internal Revenue Service (IRS). The US Citizenship and Immigration Services define what payments may be made to aliens who perform services in the United States. The Internal Revenue Service defines which payments made to aliens are reported and subject to taxes, as well as establishes the tax rates for those payments.
Note: Although the preferred term for identifying a person who is not a US citizen is ―Foreign National, the Internal Revenue Service and the US Citizenship and Immigration Services use the word ―alien. Therefore, all non-US citizens will be referred to as ―aliens‖ in this text to minimize confusion with the federal government publications.
The Type of Payment
The type of payment made to the alien falls into four primary categories:
- Dependent personal services: Wages, service related scholarship/fellowship/assistantship payments, travel reimbursements;
- Independent personal services: Consulting fees, guest speaker, honoraria
- Scholarships/Fellowships:
- Qualified component (for degree candidates): Educational expenses, tuition, fees, books, etc.
- Nonqualified component: Living expenses, stipend, housing allowances
- Miscellaneous Income Types: Prizes and awards, royalties, etc.
The “Source” of the Income
As important as the recipient’s tax status, the payor of the income and their residence also has bearing for determining US federal reporting and taxation.
A resident alien’s income is generally subject to tax in the same manner as a US citizen. Therefore, worldwide income is reported.
A nonresident alien is usually subject to US income tax only on US source income. The US source payor is responsible for reporting income paid to the nonresident alien.
A determination is made as to the source of income in the following manner:
• For compensation paid to employees and independent contractors, income is sourced to the country where services are performed.
• For non-compensation payments such as scholarships/fellowships, grants, prizes, and awards, the source of the income is the residence of the payor regardless of who actually disburses the funds. If the activity is performed outside the United States, it is not considered US sourced income.
Payment subject to Income Tax Withholding
Income paid to a resident alien follows the same withholding tax rules as US citizens. The federal withholding rates for resident aliens are the same as rates for US citizens.
Payment subject to Social Security and Medicare Taxes (FICA)
All aliens, regardless of resident or nonresident tax status are subject to the same social security and Medicare taxes for wages as US citizens. Wages earned in the employment groups as defined by the Federal Insurance Contribution Act is the income subject to these taxes.
Determining if a Payment is Reportable and How to Report It
Resident alien payments are reported to the federal government in the same manner as US citizens. Forms issued to the resident alien regarding reportable income are the Form W-2, Wage and Tax Statement for wages and the various Forms 1099 for non-wage compensation. Note: If the resident alien uses a tax treaty, he will receive a Form 1042-S for tax reporting purposes.
Nonresident alien payments subject to taxes are reported to the federal government. Forms issued to the nonresident alien are Form W-2, Wage and Tax Statement for wages subject to income taxes and/or FICA taxes and the Form 1042-S, Foreign Person's United States Source Income Subject to Withholding for non-wage compensation. Form 1099 cannot be issued to nonresident aliens.
Foreign Entities
Withholding of Tax on Foreign Entities other than Individuals
The reporting and withholding of taxes associated with payments made to non-US entities, besides individuals by universities, community colleges, and other agencies of the State of North Carolina, are in accordance with the laws and regulations of the Internal Revenue Service (IRS).
The Payee - Tax Residency Status
Nonresident alien (NRA) withholding applies only to payments made to a payee that is a foreign person. It does not apply to payments made to US persons. The types of foreign entities besides nonresident aliens that receive income from US payors include foreign corporations (with or without US branches), foreign partnerships, foreign trusts, foreign estates, foreign governments, and international organizations. Payments made to US agents of foreign persons are subject to NRA withholding.
To determine if a non-US entity is classified as a foreign person use the following Standards of Knowledge:
(1) Actual Knowledge of the status of the Payee, or ―reason to know (i.e., information on the status of the payee is available if a reasonable effort is made to secure it);
(2) Documents presented by, for, or about the payee;
(3) The filing of a withholding certificate by the payee (Forms W-8BEN, W-8ECI, W-8EXP, W-8IMY, 8233, or W-9); or
(4) Presumption Rules: The regulatory presumptions listed at Treas. Reg. 1.1441-1(b) (3) (iii) et seq..
The Income Subject to NRA Withholding
Generally, a payment is subject to NRA withholding if it is from sources within the United States and it is either:
Fixed or determinable annual or periodical (FDAP) income, or
Certain gains from the disposition of timber, coal, and iron ore, or from the sale or exchange of patents, copyrights, and similar intangible property.
Specific examples of FDAP income as well as income that are not subject to NRA withholding are found in IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.
This income falls into one of two categories:
Effectively connected income. Generally, when a foreign person engages in a trade or business in the United States, all income from sources within the United States other than fixed or determinable annual or periodical (FDAP) income is considered effectively connected with a US business. FDAP income may or may not be effectively connected with a US business. Or,
Income not effectively connected. A payment is subject to NRA withholding if it is US. source income and it is either FDAP or certain gains.
Withholding Requirements
Different kinds of income are subject to different withholding requirements.
Effectively Connected Income:
Foreign persons are generally subject to US tax at a 30% rate on income they receive from US sources. For exceptions to the 30% withholding, refer to the IRS Tax Schedule. ECI is taxed after deductions at single or married filing separately rates. A nonresident alien cannot claim the standard deduction and with few exceptions, can claim only one personal exemption. ECI taxable income is reportable on the Form 1042 and Form 1042-S.
Income Not Effectively Connected:
Foreign persons are generally subject to US tax at a 30% rate on income they receive from US sources. For exceptions to the 30% withholding, refer to the IRS Tax Schedule.
For additional information, these policies are posted on the Office of State Controller’s web site at:
http://osc.nc.gov/state-employees/statewide-policies/600-foreign-nationals/payments-and-compensation-foreign-nationals
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6.4 Catawba Valley Community College Payment Card Industry (PCI) Procedure
Acceptable Payment cards: The College, in association with the Office of the State Controller, have negotiated contracts to accept Visa, MasterCard, Discover, and American Express payment cards. Departments may not negotiate their own contracts with payment card companies or utilize a third-party processor of any kind unless authorized. For more information, contact the Business Office.
Authorized Vendors: The College has contracted with several vendors to assist in the engagement of payment cards activity. These vendors meet the College’s requirements for Payment Card Industry Data Security Standards as required in the College’s Payment Card Industry Compliance Policy.
Payment Card Terminals: Installation, use, and maintenance of payment card terminals, including external swipe devices and mobile applications, must be coordinated through Information Technology Services. All devices must store, process, or transmit data securely according to PCI DSS (Data Security Standards).
Payment Card Transactions: Business Office personnel will provide on-site training at initial setup to authorized personnel. Each department is responsible to ensure that only authorized staff with proper security and training have access to payment terminals.
Terminal Security: Devices that capture payment card data via direct physical interaction with the card, (such as swipe readers and keyboards) must be protected and secured. This protection must include preventing the devices from being tampered or substituted and must be maintained in a secure location. The devices should be inspected at least annually. This inspection includes checking the surfaces for tampering or substitution.
Engagement of Payment Card Commerce: When engaging in payment card commerce transactions, the following standards must be met:
- Adhere to college accounting policies and procedures
- Transmit financial information electronically using a level of security that meets or exceeds PCI-DSS compliance standards
- Use only authorized payment card commerce vendors
- Satisfy security requirements for secure connections and data management
- Ongoing training to ensure compliance with PCI-DSS compliance standards as they change from time to time
Security and Technical Standards: An individual’s payment card information is confidential. Failure to maintain strict control over this information could result in unauthorized use of a payment card number, identity theft, and serious consequences for both the customer and the College. Departments are responsible for safeguarding the confidentiality of commerce transactional data. All processes, procedures and technologies must follow the security standards dictated in the PCI DSS.
PCI-DSS Compliance: Payment Card Industry security standards are technical and operational requirements set by the PCI Security Standards Council (PCI SSC) to protect cardholder data. These standards are a set of mandated requirements agreed upon by the four major payment card companies: VISA, MasterCard, Discover and American Express.
The PCI Data Security Standards applies to all entities that store, process, and/or transmit cardholder data. The security controls and processes required by PCI DSS are vital to protecting cardholder account data (both electronic and paper handling), including the primary account number (PAN) printed on the front of a payment card. Merchants and any other service providers involved with payment card processing must never store sensitive authentication data after authorization. This includes sensitive data that is printed on a card, or stored on a card’s magnetic stripe or chip – and personal identification numbers entered by the cardholder. It is the duty of the College’s PCI Compliance Committee to ensure the college complies with PCI-DSS standards.
» Catawba Valley Community College Payment Card Industry (PCI) Procedure
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6.5 Sound Fiscal and Management Policy
The Sound Fiscal/Management Policy was mandated for all community colleges by the State Board of Community Colleges in September 2018. The policy was developed to address any concerns with fiscal management of funds at a community college.
- Expending funds prudently and consistently with the approved budget.
- Demonstrating stewardship of the institution’s State financial resources by effectively executing the institution’s budget to ensure that the percentage of State current operating funds remaining unexpended does not exceed five percent or five times the system wide percentage, whichever is higher.
- Ensuring that institutional fund accounts do not have a negative balance at the end of the fiscal year unless such an instance exists for a planned reason, such as an anticipated reimbursement. If any institutional fund account has a negative balance at year-end, the negative fund balance after the posting of all accrual entries shall be reviewed. In the event the negative balance is not due to a planned reason, the college shall develop a plan to rectify the negative balance, and the information shall be reported to the Board of Trustees at its first scheduled meeting following year-end.
- Tracking expenditures consistent with the North Carolina Community College System’s Chart of Accounts, as outlined in the NC Community College System Accounting Procedures Manual.
- Providing financial reports to the local boards of trustees at intervals determined by the local board of trustees.
- Maintaining a system of internal controls as prescribed by G.S. 143D-7.
- Ensuring the college does not overdraw accounts by ensuring bank accounts are reconciled and any discrepancies and a plan for resolution are identified within 30 business days from the end of the prior month. In the event a college fails to comply with this requirement more than once during a fiscal year, such information shall be reported to the Board of Trustees at its first scheduled meeting following the month of non-compliance.
- Submitting complete and accurate financial statements to the North Carolina Office of the State Controller by the prescribed deadline.
- Ensuring that audits are conducted consistent with G.S. 115D-20(9) and G.S. 115D-58.16.
- Addressing any findings identified in audits, compliance reviews, SACSCOC reviews, or other monitoring reviews.
- Ensuring that the college is actively seeking to fill leadership and other supervisory positions in a timely manner with individuals of high competence.
- Monitoring staff turnover by providing an employee vacancy report for information to the local board of trustees at least biannually.
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6.6 Regulations of Services of Alcohol
Policies and procedures governing the service of alcohol (beer and wine) on the CVCC campus or facilities must be followed by staff, students, alumni, guests, individuals and catering or organizations renting or leasing CVCC facilities. Any use, service or sale of alcohol not authorized by this policy is prohibited.
Alcohol service is permitted only at times and locations approved pursuant to this policy (see policy 4.11 for campus alcohol policy). Service of alcohol at any other time or on any part of the CVCC campus is not
permissible.
Organizations and individuals who rent or lease any portion of the CVCC campus or any other facility may provide alcohol service upon compliance with this policy and approval of the CVCC President. Said organizations seeking to serve alcohol shall:
- Submit a copy of the certificate of general liability insurance policy demonstrating coverage for any claims or causes of action arising from the service of alcohol. Said liability insurance policy shall havelimits of liability of not less than $1,000,000.00 per incident and $3,000,000.00 aggregate, and shall name CVCC as an additional insured (which includes liquor liability). Provision of the certificate should occur one week in advance of the event.
- Assume all liability and hold CVCC harmless for any and all claims which arise as a result of the use of the CVCC campus or facility, including but not limited to any claims which arise as a result of the service of alcohol.
- Indemnify and hold harmless CVCC from any and all claims which arise as a result of the use of the CVCC campus or facility, including but not limited to any claims which arise as a result of the service of alcohol.
- Abide by the following rules and regulations:
- Bar services may only be open and available for a maximum of _ hours per event;
- CVCC Campus Security shall be required onsite during the entirety of the event at which alcohol will be served and the organization will be charged for the cost of security;
- All alcohol shall be served by an approved bartender and/or caterer insured under the policy of insurance referenced above;
- All required North Carolina Alcoholic Beverage Commission permits must be obtained and provided prior to commencement of the event;
- No alcohol may be sold at any event which is open to the general public for which no ticket is required.
- Individuals renting any portion of the campus or facilities may not sell alcohol.
All applicable permits, certifications and proof of insurance must be presented to the facility director at least one week prior to the scheduled event. No alcohol may be served in the event the applicable permits, certifications and proof of insurance are not provided as required by this policy. Failure to present the required documentation and denial of the right to serve alcohol does not release the lessee of the portion of the CVCC campus or facility from its/ his contracted financial obligation.
Alcohol shall not be offered on a self-service basis. No “brown bagging” is permitted. All Catawba County and Alexander County ordinances and regulations as well as North Carolina law (including but not limited to permitting requirements) apply to events held on the CVCC campus or any other CVCC facility.
Proof of proper identification is required prior to the service of alcohol. The lessee and any caterer or bartender shall not serve alcohol to any person under the age of 21. No intoxicated individual shall be served alcohol.
Service of alcohol must cease sixty minutes prior to the scheduled end of any event. All alcohol must be secured at the time service ceases.
APPLICATION TO SERVE ALCOHOL AT CAMPUS EVENTS IS LOCATED AT THE END OF THIS DOCUMENT
Catawba Valley Community College
Application – Serving Alcohol On CampusAlcohol service is permitted only at times/locations approved pursuant to policy 6.6 Service of alcohol at any other time or on any part of the CVCC campus is not permissible (policy 4.11).
All requirements in Policy 6.6 (included below) must be followed and proper certificates, etc. submitted in a timely manner as requested.
Name of Organization:__________________________
Campus Location Requested:______________________
Date/Time:__________________________________
I have read and agree to the guidelines in CVCC Policy 6.6:
Signed: ____________________________ Date_____
CVCC Approval: _______________________ Date_____Organizations and individuals who rent or lease any portion of the CVCC campus or any other CVCC facility may provide alcohol service upon compliance with this policyand approval of the CVCC President. Said organizations seeking to serve alcohol shall:
- Submit a copy of the certificate of general liability insurance policy demonstrating coverage for any claims or causes of action arising from the service of alcohol. Said liability insurance policy shall havelimits of liability of not less than $1,000,000.00 per incident and $3,000,000.00 aggregate, and shall name CVCC as an additional insured (which includes liquor liability). Provision of the certificate should occur one week in advance.
- Assume all liability and hold CVCC harmless for any and all claims which arise as a result of the use of the CVCC campus or facility, including but not limited to any claims which arise as a result of the service of alcohol.
- Indemnify and hold harmless CVCC from any and all claims which arise as a result of the use of the CVCC campus or facility, including but not limited to any claims which arise as a result of the service of alcohol.
- Abide by the following rules and regulations:
- Bar services may only be open and available for a maximum of___ hours per event;
- CVCC Campus Security shall be required onsite during the entirety of the event at which alcohol will be served and the organization will be charged for the cost of security;
- All alcohol shall be served by an approved bartender and/or caterer insured under the policy of insurance referenced above;
- All required North Carolina Alcoholic Beverage Commission permits must be obtained and provided prior to commencement of the event;
- No alcohol may be sold at any event which is open to the general public for which no ticket is required.
- Individuals renting any portion of the campus or facilities may not sell alcohol.
All applicable permits, certifications and proof of insurance must be presented to the facility director at least one week prior to the scheduled event. No alcohol may be served in the event the applicable permits, certifications and proof of insurance are not provided as required by this policy. Failure to present the required documentation and denial of the right to serve alcohol does not release the lessee of the portion of the CVCC campus or facility from its/ his contracted financial obligation.