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Office of General Counsel Policies & Guidelines

Policy Number: 
B-070
Policy/Guideline Area: 
Business and Finance Guidelines
Applicable Divisions: 
Community Colleges
Purpose: 

The purpose of the following guideline is to outline significant provisions for consistent administration of the deferred fee payment program at the institutions governed by the Tennessee Board of Regents. The guideline is intended to serve as a reference document for institutional staff responsible for implementing and communicating deferred fee payment matters.

Policy/Guideline: 

General Provisions

  1. Each two-year institution is authorized to offer a deferred payment plan as provided in the Tennessee Board of Regents Policy on Payment of Student Fees and Enrollment of Students (No. 4:01:03:00). The deferred payment plan is available for regular academic terms, but not for summer or other short terms.
  2. Eligibility
    1. All students in good financial standing and with no outstanding account balances from previous terms are eligible to participate in the deferred payment program.
    2. Students who have failed to make timely payments in previous terms may be denied the right to participate in the deferred payment program in additional enrollment periods.
    3. Institutions may set minimum balances due for students to be eligible for deferred payment.
  3. Payment Terms
    1. All financial aid awarded by the institution, including student loans, must be applied toward payment of total fee balances before the deferred payment plan may be utilized. Two options are available for the remaining balance after financial aid and discounts are applied. Community colleges will determine as a system which of the following plans to offer.
      1. Option 1
        1. At least 50% of the remaining balance after financial aid and discounts are applied must be paid at the beginning of the term.
        2. The remaining balance may be paid in a minimum of two equal installments.
          1. Due dates for these payments will be set by the institution with approximately 30 days between due dates.
          2. All installments should be scheduled so that the entire balance due is paid by the end of the semester.
      2. Option 2
        1. The remaining balance after financial aid and discounts will be divided into four (4) equal payments with the first payment due before the first day of class and the remaining payments due on the 30th of each subsequent month. All installments should be scheduled so that the entire balance due is paid by the end of the semester.
  4. Service Charges and Fines
    1. Institutions may charge a service fee of $10 to $50 to help defray administrative costs associated with the deferment program.
    2. An additional late payment charge not to exceed $25 will be assessed on each installment which is not paid on or before the due date and each 30 day period past the 2nd installment up to a maximum of $100.
    3. Withdrawals from classes will not alter any remaining balance due except to the extent that any refund may be applied in accordance with Guideline B-060.
  5. Approval of Exceptions
    1. In accordance with these guidelines, the president of an institution or designee has the authority to determine the applicability of the provisions of the deferred payment program and to approve exceptions in instances of unusual circumstances for individuals.
    2. The Chancellor or designee has the authority to permit policy-related exceptions.
    3. All such actions must be properly documented for auditing purposes. 
Sources: 

Authority

T.C.A. § 49-8-203

History

May 14, 1996 Presidents Meeting; May 9, 2000 Presidents Meeting; November 6, 2002 Presidents Meeting; February 5, 2013 Presidents Meeting; Revised at Presidents Meeting August 18, 2015

Policy Number: 
B-065
Policy/Guideline Area: 
Business and Finance Guidelines
Applicable Divisions: 
TCATs, Community Colleges
Purpose: 

The purpose of this guideline is to establish the process and procedures for sustainable campus fee (SCF) programs at institutions governed by the Tennessee Board of Regents.

Policy/Guideline: 
  1. Program Guidelines
    1. If a SCF is proposed by a campus for approval by the TBR Board, then the following Program Guidelines apply.
      1. The initial fee request should not exceed $10.00 per student per semester (Fall & Spring only).
      2. The fee shall be administered by a committee at each campus using the following criteria:
        1. Committee shall be appointed by the campus president that is comprised of an appropriate ratio of students, faculty and staff to approve and oversee the use of funds.
        2. Under the leadership of the campus administration, the committee shall develop a decision making structure to establish on an annual basis:
          1. The amount of fee to be allocated to the green power purchase (taking into consideration TVA’s ability to meet the green power purchase demand) and on-campus sustainability initiatives.
          2. Approval of on-campus sustainability initiatives.
        3. Funds for each category for on-campus sustainability initiatives should be allowed to be carried forward if needed for near-term future expenditures. Fund balances in each category should not exceed a two-year accrual without encumbrance or a carry forward justification plan.
        4. A status report shall be published by each campus at the end of each fiscal year for all program activities. Based on this report the campus committee shall evaluate each year the validity of the fee and the appropriateness of the fee amount and make a recommendation, if necessary, for an adjustment to the fee.
      3. The proceeds from the fee may be used for the following:
        1. TVA Green Power Switch or Other Certified Green Power Purchases.
          1. Recommended purchase amount 0 to 10% of the total KWH used by the campus.  Purchases over this amount should be evaluated carefully and justified by the campus committee prior to purchase. Campuses may consider buying the minimum amount to attain EPA Green Power Partnership status. (http://www.epa.gov/greenpower/join/purchase.htm)
          2. Green tag or other types of certified green power purchases should be evaluated carefully and justified by the campus committee prior to purchase.
        2. On-campus Sustainability Initiatives:
          1. Should be for direct demonstrable campus sustainability benefits.
          2. Proceeds should be allocated between sustainability initiatives with the primary focus on projects for energy efficiency and utility conservation.
          3. Should not be used for budgeted salaries, special events or operational expenditures not associated with the SCF Program.
          4. Shall comply with State law, State Building Commission/Tennessee Board of Regents Policy, Procedures and Guidelines where applicable, with regard to project approvals, use of designers and code compliance.
  2. Categories
    1. Energy and Utilities (electric, gas, water, etc.)
    2. Local Generation (Renewables – solar, wind, etc.)
    3. Alternative Fuel (Hybrid vehicles, Bio-diesel projects, etc.)
    4. Other (Environmental, Recycling, etc.)
  3. Types of Initiatives
    1. Projects
    2. Studies
    3. Research
      1. Projects should:
        1. Provide or demonstrate a specific energy or environmental benefit.
        2. Be technically and economically feasible.
        3. Be cost effective to operate and maintain.
        4. Be consistent with campus standards and master plan
      2. Studies should:
        1. Focus on implementing technologies or initiatives that are economically and technically feasible.
        2. Quantify energy or environmental benefit(s).
        3. Address feasibility, operability, and maintainability of the technology or initiative.
        4. Not duplicate prior, similar studies.
      3. Research should:
        1. Focus on identified sustainability categories.
        2. Have significant level of student participation/support.
Sources: 

Authority

T.C.A. § 49-8-203

History

President's Meeting May 16, 2007 (NEW) Revised at Presidents Meeting May 18, 2010.

Policy Number: 
B-062
Policy/Guideline Area: 
Business and Finance Guidelines
Applicable Divisions: 
TCATs, Community Colleges, System Office
Purpose: 

The purpose of this guideline is to establish the process and procedures for other educational assistance programs by institutions governed by the Tennessee Board of Regents.

Policy/Guideline: 
  1. B-062 - Support for Educational Assistance
    1. The Tennessee Board of Regents is committed to the need for the continued professional growth and development of employees. Support for educational assistance of personnel and their dependents is an important vehicle for addressing that need. The programs for TBR employees and dependents are available subject to funds being budgeted and available within the institution/System Office.
    2. The Office of Human Resources is responsible for the administration of the various programs with the exception of the program for dependents of veterans (B-062) and two programs offered to general state employees and the dependents of licensed teachers and State employees (B-061).
    3. Exceptions to the provisions of the programs for TBR employees can be made upon recommendation of the president and approval by the Chancellor.
  2. Types of Support for Educational Assistance
    1. The guidelines for Educational Assistance (P-130, P-131, B-061, B-062) contain a total of eleven (11) programs.
    2. The programs are:
      1. P-130 – Educational Assistance for TBR Employees
        1. Faculty or Administrative/Professional Staff Grant-in-Aid Program
        2. Faculty or Administrative/Professional Staff Tuition or Maintenance Fee Reimbursement Program
        3. Employee Audit/Non-credit Program
        4. Clerical and Support Staff Maintenance Fee Payment Program
        5. Fee Waiver for TBR/UT System Employees Program (formerly PC-191)
      2. P-131 – Educational Assistance for Spouse and Dependents of TBR Employees
        1. Fee Discount for Spouse and/or Dependent Children Program
      3. B-061 – Educational Assistance for State Employees and Dependents of State
        1. Employees or Public School Teachers
          1. Public Higher Education Fee Waiver for State Employees Program
          2. Fee Discount for Dependent Children of Licensed Public School Teachers or State Employees Program
      4. B-062 – Other Educational Assistance Programs
        1. Veterans’ Dependents’ Post-Secondary Education Program
        2. Disabled and Elderly Persons
    3. Complete eligibility information is contained within each Guideline.
  3. Taxation of Educational Assistance Programs
    1. Undergraduate and graduate course tuition, paid by the Tennessee Board of Regents institutions and the University of Tennessee System for their employees is eligible for exclusion from the employees' gross annual income, in accordance with Internal Revenue code (IRC) Section 127.
  4. Veterans’ Dependents’ Post-Secondary Education Program
    1. Effective July 1, 2008, T.C.A. § 49-7-102 was amended to provide that: every dependent child in this state under the age of twenty-three (23) years, whose parent was killed, died as a direct result of injuries received, or has been officially reported as being either a prisoner of war or missing in action while serving honorably as a member of the United State armed forces during a qualifying period of armed conflict, or was formerly a prisoner of war or missing in action under such circumstances, or the spouse of such veteran, is entitled to a waiver of tuition, maintenance fees, student activity fees, required registration or matriculation fees, and shall be admitted without cost to any institutions of higher education owned, operated and maintained by the state.
      1. Therefore, this program is available to both TBR employees and persons outside of the Tennessee Board of Regents system.
      2. TBR employees qualifying as a spouse or dependent for benefits under this program shall use this program first and shall not be simultaneously eligible for benefits under other programs in this guideline.
      3. Exceptions: Grant-in-Aid and Desegregation Program recipients.
    2. Eligibility
      1. The office responsible for veteran’s affairs issues shall be responsible for determining eligibility and providing application forms to those wishing to obtain benefits under this program.
      2. To be eligible for educational assistance benefits under this program, a dependent child or spouse shall:
        1. Present official certification from the United States Department of Veterans Affairs that the parent or spouse veteran was killed or died as a direct result of injuries as stated above; or
        2. Present official certification from the U.S. Department of Defense that the parent or spouse service member has been officially reported as being a prisoner of war or missing in action while serving honorably during a qualifying period of armed conflict; or
        3. Present Certificate of Release of Discharge from Active Duty, Department of Defense Form 214, for the veteran or service member from whom the eligibility for the benefits derives.
      3. The deceased veteran, prisoner of war or missing in action service member shall have been a citizen of Tennessee at the time of the qualifying event.
      4. The dependent child or spouse, prior to receiving benefits under this program, shall have or possess the necessary qualifications required for admission. To maintain eligibility, the recipient shall be in active pursuit of a specific and declared degree or certificate program.
      5. No dependent child or spouse shall be entitled to receive benefits after the conclusion of any term during which the parent (father or mother) of the dependent child or spouse is officially removed from the status of being a prisoner of war or being a service member missing in action.
      6. Eligibility of a veteran’s spouse for benefits shall terminate ten (10) years after the death of the veteran; however, eligibility shall terminate immediately upon the spouse’s remarriage within this period.
        1. The spouse's eligibility shall extend to the end of the term in which the ten (10) year period expires.
        2. A spouse who has previously earned an undergraduate degree or certificate shall not be eligible for benefits.
        3. Otherwise, the spouse shall be eligible for benefits until one of the following occurs:
          1. Prior to the expiration of benefits, the spouse earns an undergraduate degree or certificate; or
          2. The spouse has accumulated one hundred thirty-five (135) semester hours excluding required remedial or developmental hours, or the equivalent; or
          3. The spouse has attempted one hundred fifty (150) semester hours, or the equivalent, inclusive of required remedial or developmental hours.
      7. A dependent child shall be matriculated as a full-time student at a state institution of higher education prior to attainment of age twenty-three (23). However, the age limitation of dependent children shall not be strictly applied. Once declared eligible, a dependent child shall remain eligible until one of the following has occurred:
        1. Prior to attaining age 23 the dependent earns an undergraduate degree or certificate; or
        2. The dependent has accumulated one hundred thirty-five (135) semester hours excluding required remedial or developmental hours, or the equivalent; or
        3. The dependent has attempted one hundred fifty (150) semester hours, or the equivalent, inclusive of required remedial or developmental hours.
      8. For purposes of this program, the following definitions are provided:
        1. “Dependent Child” means a natural or adopted child of a veteran or service member who is claimed as a dependent for income tax purposes.
        2. “Parent” means the parent of a natural or adopted child whom such parent claims as a dependent for federal income tax purposes.
        3. “Qualifying period of armed conflict” means any hostile military operation for which U.S. military campaign medals as listed in T.C.A. § 49-7-102 are authorized.
        4. “Service member” means a Tennessee resident who is engaged in active U.S. military service.
        5. “Served honorably” means the character of service condition as reported on Certificate of Release or Discharge from Active Duty (Department of Defense Form 214).
        6. “State institution(s) of higher education” means any post-secondary institution operated by the Board of Trustees of The University of Tennessee system or the Tennessee Board of Regents of the state university, community college and colleges of applied technology system that offers courses of instruction leading to a certificate or degree.
        7. “Veteran” means a Tennessee resident who has entered and served honorably in the U.S. armed forces.
    3. Fees Paid/Type Courses Paid/Number of Hours
      1. The participant is entitled to a waiver of tuition and/or maintenance fees, and/or student activity fees, and/or required registration or matriculation fees, and shall be admitted without cost to any TBR institution.
      2. A full-time student load (12 semester hours or equivalent) is required.
    4. Payback Provisions
      1. None
    5. When the Participant May Attend
      1. Students may apply for benefits during the next registration or enrollment period for the next complete term after July 1, 2000.
    6. Accounting/Budgeting 
      1. Any fees waived by statute that are calculated and credited to revenue for administration purposes should be written off against a contra revenue account.
      2. No expenditures should be charged to scholarships and fellowships.
    7. Where the Participant May Attend
      1. Any public institution of higher education in Tennessee
  5. ​​Disabled and Elderly Persons Program
    1. In accordance with T.C.A. § 49-7-113 and TBR Guideline B-060, certain disabled and elderly students, as well as state service retirees, are able to enroll in courses free or at a reduced rate.
    2. Eligibility
      1. For audit courses, no fee is required for persons with a permanent, total disability; persons 60 years of age or older and domiciled in Tennessee; and persons who have retired from state service with 30 or more years of service, regardless of age.
      2. For credit courses, a reduced fee is charged to persons with a permanent, total disability, and persons who will become 65 years of age or older during the academic semester in which they begin classes and who are domiciled in Tennessee.
    3. Fees Paid/Type Courses Paid/Number of Hours
      1. A fee of $70 per semester or $60 per trimester may be assessed for credit courses. (This fee includes maintenance fees and all mandatory fees; it does not include any non-mandatory fees including, but not limited to, course-specific fees, materials fees, online course fees, application fees, parking fees, etc.)
      2. Disabled/elderly program students shall enroll in credit courses on a space-available basis.
      3. There is no limit on the number of courses that may be taken during a semester.
      4. The institution where the disabled/elderly program student is attending classes will provide forms for processing fees waived or assessed.
    4. Payback Provisions
      1. None
    5. When the Participant May Attend
      1. Employees participating in this program, in counsel with their immediate supervisors, should limit the number of courses so as to maintain an optimum level of job performance.
      2. Employees participating in this program should schedule courses at times other than during regularly scheduled work hours unless annual leave or flex time, based on the institution's needs, have been approved.
    6. Accounting/Budgeting
      1. Any fees set by statute are considered the fee rate for that group. The fees are not considered waived.
      2. No expenditures should be charged to scholarships and fellowships.
    7. Where the Participant May Attend
      1. Employees may enroll at any public Tennessee institution.
Sources: 

Authority

T.C.A. § 49-8-203; All state and federal statutes, codes, Acts, rules and regulations referenced in this guideline.

History

Presidents Meeting February 7, 2006; Presidents Meeting November 8, 2006; Presidents meeting August 21, 2007; Presidents Meeting November 6, 2007; Presidents Meeting November 5, 2008. Revisions approved at Presidents Meeting February 4, 2014; Revisions approved at Presidents Meeting, August 18, 2015.

Policy Number: 
B-061
Policy/Guideline Area: 
Business and Finance Guidelines
Applicable Divisions: 
TCATs, Community Colleges, System Office
Purpose: 

The purpose of this guideline is to establish the process and procedures for educational assistance to state employees and their dependents and the dependents of public school teachers by institutions governed by the Tennessee Board of Regents.

Policy/Guideline: 
  1. B-061 - Support for Educational Assistance
    1. The Tennessee Board of Regents is committed to the need for the continued professional growth and development of employees. Support for educational assistance of personnel and their dependents is an important vehicle for addressing that need. The programs for TBR employees and dependents are available subject to funds being budgeted and available within the institution/college of applied technology/System Office.
    2. The Office of Human Resources is responsible for the administration of the various programs with the exception of the program for dependents of veterans (B-062) and two programs offered to general state employees and the dependents of licensed teachers and State employees (B-061). These forms are available from the Tennessee Higher Education Commission at THEC Fee & Discount Waivers
    3. Exceptions to the provisions of the programs for TBR employees can be made upon recommendation of the president/director and approval by the Chancellor.
  2. Types of Support for Educational Assistance
    1. The guidelines for Educational Assistance (P-130, P-131, B-061, B-062) contain a total of eleven (11) programs.
    2. The programs are:
      1. P-130 – Educational Assistance for TBR Employees
        1. Faculty or Administrative/Professional Staff Grant-in-Aid Program
        2. Faculty or Administrative/Professional Staff Tuition or Maintenance Fee Reimbursement Program
        3. Employee Audit/Non-credit Program
        4. Clerical and Support Staff Maintenance Fee Payment Program
        5. Fee Waiver for TBR/UT System Employees Program (formerly PC-191)
      2. P-131 – Educational Assistance for Spouse and Dependents of TBR Employees
        1. a. Fee Discount for Spouse and/or Dependent Children Program
      3. B-061 – Educational Assistance for State Employees and Dependents of State Employees or Public School Teachers
        1. Fee Discount for Dependent Children of Licensed Public School Teachers or State Employees Program
        2. Public Higher Education Fee Waiver for State Employees Program
      4. B-062 – Other Educational Assistance Programs
        1. Veterans’ Dependents’ Post-Secondary Education Program
        2. State Employees Age 65 or Above Program
    3. Complete eligibility information is contained within each Guideline.
  3. Taxation of Educational Assistance Programs
    1. Undergraduate and graduate course tuition, up to $5250 per year, paid by the Tennessee Board of Regents institutions and the University of Tennessee System for their employees is eligible for exclusion from the employees' gross annual income, in accordance with Internal Revenue code (IRC) Section 127.
  4. Public Higher Education Fee Waiver for State Employees Program - This fee waiver program is for general state employees exclusive of TBR and UT system employees.
    1. These rules implement the provisions of the T.C.A. § 8-50-114. The Code enables full-time employees of the State of Tennessee to be eligible for enrollment in one course consisting of no more than four (4) credit hours or one hundred twenty (120) clock hours per term at any State supported college or university or Tennessee College of Applied Technology without paying tuition charges, maintenance fees, mandatory fees, or RODP on-line course fees.
      1. Employees are responsible for all other fees, including, but not limited to special course fees, books and supplies, application fees, applied music fees, lab fees, off-campus facilities fees, parking fees and traffic fines.
    2. Pursuant to T.C.A. § 10-5-101 et seq., employees of the State’s regional library system became employees of the Department of State, effective July 1, 1999. As such, they became eligible to participate in the State’s educational assistance programs.
      1. In addition, effective September 8, 1999, the Tennessee Higher Education Commission determined that Human Resource Agency employees are not State employees as that term is defined in the Commission’s rules governing these programs and thus are not eligible for fee waivers.
    3. Course enrollment will be permitted on a "space available" first-come-first served basis.
      1. State employees may register no earlier than four (4) weeks prior to the first day of classes.
      2. No tuition paying student shall be denied enrollment in a course because of state employee enrollments pursuant to this section.
    4. State employees must receive credit for the course in which they are enrolled.
      1. In addition, changes may not be made from credit to audit during the course of the term.
      2. Other guidelines and procedures for administration of this program are available from the Tennessee Higher Education Commission at Fee Waiver & Discount Programs
  5. Fee Discount for Dependents of Licensed Public School Teachers, Retired Teachers, or State Employees Program
    1. These rules implement the provisions of T.C.A. § 49-7-101 et seq. and § 8-50-101 et seq.
      1. The Codes enable children under the age of twenty-four (24) to receive a twenty-five percent (25%) discount on tuition at any state operated institution of higher learning if their parent:
        1. Is employed as a full-time licensed teacher in any public school in Tennessee or as a full-time employee of the state of Tennessee;
        2. Is a retired teacher - THEC Rule 1540-01-05-.01 defines a retired teacher as a certified teacher who retires after a minimum of thirty (30) years of full-time creditable service in Tennessee public schools or who receives disability retirement after a minimum of twenty-five (25) years of full-time creditable service in Tennessee public schools.
        3. Is a retired employee of the state of Tennessee who retired after a minimum of twenty-five (25) years of full-time creditable service;
        4. Was killed in the line of duty while a full-time employee of the state of Tennessee; or
        5. Died while a full-time employee, though not "in the line of duty"; or
        6. Died while employed as a public school teacher and the child is using the benefit at the time of the parent/teacher's death.
    2. Tuition includes undergraduate maintenance fees and college of applied technology program fees; it does not include any other fees, including, but not limited to, application for admission fees, student activity fees, debt service fees, lab fees, applied music fees, books and supplies, dormitory charges or meal plans.
    3. Other guidelines and procedures for administration of this program are available from the Tennessee Higher Education Commission at THEC Fee Waiver & Discount Programs   
Sources: 

Authority

T.C.A. § 49-8-203; All state and federal statutes, codes, Acts, rules and regulations referenced in this guideline.

History

Presidents Meeting, February 7, 2006; Presidents Meeting, November 6, 2006; President Meeting, May 15, 2007; Presidents Meeting November 6, 2007; August 16, 2011 presidents meeting. Revised January 17, 2014 per THEC Rule 1540-01-05 promulgated due to revision of T.C.A. § 49-7-119, which became effective July 1, 2013: Revised at Presidents Meeting, August 19, 2014; Revised at Presidents Meeting, August 18, 2015.

Policy Number: 
B-060
Policy/Guideline Area: 
Business and Finance Guidelines
Applicable Divisions: 
TCATs, Community Colleges
Purpose: 

The purpose of the following guideline is to outline significant provisions for consistent administration of fees, charges, and refunds at the institutions governed by the Tennessee Board of Regents. These guidelines largely represent a consolidation of existing statements and practices. They are intended to serve as a reference document for institutional staff responsible for implementing and communicating fee-related matters. The guideline contents include general and specific provisions for: maintenance fees; out-of-state tuition; debt service fees; student activity; miscellaneous and incidental fees; deposits; and refunds.

These guidelines supersede all previous fee and refund guidelines, and may be revised by action of the Tennessee Board of Regents or the Chancellor. Exceptions to the guidelines may be made by the Chancellor upon written request by a president.

Policy/Guideline: 
  1. General Provisions
    1. Establishment of Fees and Charges
      1. The Tennessee Board of Regents must establish or approve all institutional fees and charges unless specific exceptions are provided. The Board has adopted a practice of approving changes in fees and charges one time per year at the Board meeting when the annual operating budgets are considered. This is usually the regular June meeting of the Board.
      2. The institution president is responsible for the enforcement and collection of all fees and charges. Fees and charges which specifically do not require Board approval must receive formal approval by the president or designee.
      3. Institutions should attempt to follow a general format in publishing information on fees and charges, including but not limited to the following:
        1. All statements which include the fee amount should be complete and specific enough to prevent misunderstanding by readers.
        2. When a fee is quoted, the refund procedures should be clearly stated.  If there are qualifying conditions for refunds, those conditions also should be stated. If there is no refund, it should be labeled as non-refundable.
        3. Whenever possible, specific dates related to the payment of fees and the refund procedures should be stated.
        4. It should be made clear that all fees are subject to change at any time.
    2. Approval of Exceptions
      1. In accordance with these guidelines, the president of an institution or designee has the authority to determine the applicability of certain fees, fines, charges, and refunds, and to approve exceptions in instances of unusual circumstances or for special groups.
      2. All such actions should be properly documented for auditing purposes.
    3. Appeals Process
      1. An appeals process should be established by each institution, and communicated to students, faculty, and staff.
      2. The process should provide for final appeal to the president or designee.
      3. Separate appeals processes may exist for different types of fees, charges, and refunds.
    4. Payment of Student Fees
      1. As provided in the Tennessee Board of Regents Policy on Payment of Student Fees and Enrollment of Students (No. 4:01:03:00):
        1. An applicant for admission to an institution will be considered and counted as a student when all assessed fees have been paid in cash, when the initial minimum payment due under the deferred payment plan has been paid, or when an acceptable commitment from an agency or organization approved by the institution has been received by the institution.
        2. An applicant shall possess an acceptable commitment when they have timely submitted an application(s) for financial aid with the reasonable probability of receiving such.
      2. Pursuant to the above condition, institutions with a continuous registration process must require payment of all applicable fees or payment of the initial minimum payment due under the deferred payment plan prior to the regular registration period as defined by each institution.
        1. Students who do not prepay all fees or have an acceptable approved financial aid deferment will forfeit pre-registration privileges and must enroll under the normal registration process.
      3. A prepayment plan to assist parents and students with planning and budgeting their academic year expenses is authorized.
        1. Under the plan, students may choose the expenses they wish to prepay including tuition, and fees.
        2. Expenses can be prepaid over a period of eight months.
  2. Maintenance Fees 
    1. Description of Fees
      1. The Maintenance Fee is a charge to students enrolled in credit courses. It is an enrollment or registration fee and is calculated based on the number of Student Credit Hours (SCH's) for two-year institutions or student contact hours for colleges of applied technology for which the student enrolls. Fees are established by the Tennessee Board of Regents.
      2. The same fee is applicable to courses for which the student is enrolled on an audit basis.
    2. Rates
      1. Rates are established by the Board and incorporated in a fee schedule. The hourly rate will be discounted when undergraduate students enroll in greater than 12 hours stated otherwise elsewhere in this guideline.
      2. Developmental courses are charged at the two-year institution hourly rate. If a student enrolls in both regular and developmental courses, the rates shall be assessed at the hourly rate for each up to the current amount of 12 undergraduate hours. The discounted tuition rate will then apply to any additional courses.
      3. For institutions with multiple summer sessions, maintenance fees and tuition may be assessed by using the current part-time rate with no maximum amount for total credit hours enrolled.
      4. Maintenance fees may not be waived. However, specific exceptions are provided in the following instances:
        1. Pursuant to T.C.A. § 49-7-113, exceptions exist for certain disabled and elderly students, as well as state service retirees. For audit courses, no fee is required for persons with a permanent, total disability, persons 60 years of age or older and domiciled in Tennessee and persons who have retired from state service with 30 or more years of service, regardless of age. For credit, a fee of $70 per semester or $60 per trimester may be charged to persons with a permanent, total disability, and persons who will become 65 years of age or older during the academic semester in which they begin classes and who are domiciled in Tennessee. (Note: This fee includes all mandatory fees; it does not include course-specific fees such as all miscellaneous course fees, materials fees, application fee, online course fees and parking fees.) This only applies to enrollment on a space available basis, which permits registration no earlier than four (4) weeks prior to the first day of classes.
        2. Pursuant to T.C.A. § 49-7-102, certain statutory fee exceptions exist for dependents and spouses of military personnel killed, missing in action, or officially declared a prisoner of war while serving honorably as a member of the armed forces during a period of armed conflict. If these provisions are invoked by a student, the correct applicable law should be determined.
      5. Military reserve and national guard personnel who are mobilized to active military service within six months of attendance at a TBR institution and whose mobilization lasts more than six months shall be charged upon re-enrollment at such institution the tuition, maintenance fees, student activity fees and required registration or matriculation fees that were in effect when such student was enrolled prior to mobilization. After re-enrollment, no increase in tuition, maintenance fees, student activity fees or required registration or matriculation fees shall be assessed to such student until a period of time equal to one year plus the combined length of all military mobilizations has elapsed. In no event, however, shall a student’s tuition and fees be frozen after re-enrollment for more than four years.
        1. To be eligible for the tuition and fee freeze, the student shall have completed military service under honorable conditions and shall re-enroll in a TBR institution within six months of release from active duty.
        2. A student eligible for the tuition and fee freeze may transfer from one state institution of higher education to another state institution of higher education one time with such student’s tuition and fees calculated at the institution to which the student transfers as if the student had been in attendance at that institution before the mobilization that resulted in the student’s tuition and fee freeze at the initial institution.
    3. Accounting Treatment
      1. A revenue account for Maintenance Fees is used to record both the revenue assessed and refunds made.
      2. As provided in GASB Statements 34 and 35, summer school revenues and expenditures must be accrued at fiscal year-end. Summer school activity will not be allocated to only one fiscal year.
      3. In some cases full fees are not assessed to students. These occur when statutes establish separate rates for such groups as the disabled, elderly, and military dependents. The difference between normal fees and special fees is not assessed. Fees not assessed in these cases do not represent revenue. For administrative purposes the fees may be calculated and credited to revenue, then written off against a contra revenue account.
      4. Agreements/contracts may be executed with a third party (federal agency, corporation, institution, etc.), but not with the individual student, to deliver routine courses at a fixed rate or for the cost of delivering the course and may provide for fees not to be charged to individual students. Individual student fees will be assessed as usual and charged to the functional category Scholarships and Fellowships. The amount charged to or paid by the third party is credited to the appropriate Grants and Contracts revenue account.
      5. In some cases a non-credit course provides an option to grant regular credit. If a separate (or additional) fee is collected because of the credit, that amount is reported as Maintenance Fee revenue.
      6. Full-time employees of the Tennessee Board of Regents and the University of Tennessee systems may enroll in one course per term at any public postsecondary institution, with fees waived for the employee.
        1. No tuition paying student shall be denied enrollment in a course because of enrollment of TBR and UT employees.
        2. Spouses and dependents of employees of the Tennessee Board of Regents system may be eligible for a student fee discount for undergraduate courses at Tennessee Board of Regents institutions and the University of Tennessee.
      7. Tennessee Board of Regents institutions exchange funds for tuition fees of employees’ spouses and dependents who participate in a Tennessee Board of Regents educational assistance program. This also applies to exchanging of funds for maintenance fee discounts between Tennessee Board of Regents institutions and the University of Tennessee institutions. 
      8. To the extent they are not reimbursed by the State, fee waivers for full-time State employees and fee discounts to children of certified public school teachers shall be accounted for as a scholarship.
  3. Out-of-State Tuition 
    1. Description of Fee
      1. This is an additional fee charged to students classified as non-residents who are enrolled for credit courses, including audit courses. This fee is in addition to the maintenance fee.
      2. Out-of-state tuition fee rates are established by the Tennessee Board of Regents and are incorporated in the annual fee schedule.
      3. Applicability of out-of-state tuition is determined pursuant to Tennessee Board of Regents Policy on Regulations for Students In-State and Out-of-State for the Purpose of Paying College Fees and Tuition and for Admission Purposes (No. 3:05:01:00). The business office will collect fees based upon student classification as determined by the appropriate authority within the institution.
    2. Accounting Treatment
      1. A revenue account for out-of-state tuition is used for recording both credits for fees and debits for refunds.
      2. Other accounting is the same for out-of-state tuition as that outlined under Maintenance Fees except that separate out-of-state accounts are used.
        1. In the case of fees not collected from students under grants and contracts, the same expense account under Scholarships and Fellowships may be used.
  4. eRate
    1. Description of Fee
      1. The eRate is available to students who enroll at TBR institutions, who are classified as non-residents of Tennessee, and who are enrolled exclusively in online courses.
      2. The eRate is 150% of the institution's approved undergraduate maintenance fee.
      3. The hourly rate will not be discounted for students receiving the eRate and enrolling in greater than 12 undergraduate hours.
      4. To qualify for an eRate, students must:
        1. Meet all institution admission requirements and must
        2. Be verified as an online out-of-state student enrolled exclusively in courses delivered online by a procedure documented by the institution.
        3. Out-of-state students in item 2. above refers to geographic location and does not include undocumented students living in Tennessee.
      5. Students enrolled in any type courses other than online (on-ground, telecourse, distance education, etc.) will not be eligible for the eRate specified in this guideline and will instead incur traditional non-resident fees and charges.
        1. Students who enroll in both online courses and other type courses and subsequently drop the other type courses will not then become eligible for the eRate. 
      6. Institutions enrolling eRate students as defined in this guideline must provide a method to mitigate any negative impact on the opportunity for Tennessee student enrollment in online courses.
    2. Accounting Treatment
      1. The eRate is comprised of the maintenance fee and a 50% markup that represents the out-of-state tuition portion.
      2. The maintenance fee and the out-of-state tuition should each be recorded as outlined in sections II and III above.
  5. Debt Service Fees
    1. The amount of debt service fees will be approved by the Tennessee Board of Regents. Separate rates are recommended by each institution based on requirements of the institution.
    2. For simplicity of administration and communication, institutions may combine debt service with maintenance fees in quoting fee rates, in fee billings and charges, and in making refunds.
    3. Revenue from debt service fees will be recorded in the unrestricted current fund and then transferred to the retirement of indebtedness fund as either a mandatory transfer or a non-mandatory transfer. The portion of debt service fee revenue used for current-year debt service will be reported as a mandatory transfer. Any additional debt service fee revenue will be transferred to the retirement of indebtedness fund as a non-mandatory transfer.
    4. At the conclusion of the debt retirement for a given project, the debt service fee attributed to the project will cease. Any new project requires the approval of a new debt service fee on its own merits without the reallocation of any existing fee. Any continuation of fees necessary for renewal and replacement of a project for which the debt is totally retired must be approved for that purpose by the Tennessee Board of Regents.
  6. Student Fees 
    1. A student government activity fee may be established pursuant to T.C.A. § 49-8-109. Any increase in this fee shall be subject to a referendum for student body approval or rejection. The fee will be administered in accordance with the provisions adopted by each institution. These fees will be restricted current funds additions. These fees are refundable on the same basis as maintenance fees or as established by the institution.
    2. Student activity fees (other than student government activity fees) will be approved by the Tennessee Board of Regents. Such fees may be recommended by each institution based on services to be provided which are related to the activity fee. These fees will be unrestricted current funds revenues. These fees are refundable on the same basis as maintenance fees or as established by the institution.
  7. Technology Access Fees
    1. A fee shall be levied by each institution for the purpose of providing student access to computing and similar technologies. It is refundable on the same basis as maintenance fees or as established by the institutions. Institutions shall establish expenditure accounts and designated revenue accounts for purposes of recording technology access fees and expenditures.
    2. Use
      1. Technology Access Fees (TAF) are composed of two pools. Pool 1 represents the TAF prior to FY 1997-98 when it did not exceed $30 annually. Pool 2 represents the difference between the current TAF rate and the pre-1997-98 TAF rate. Items 2 and 3 below shall apply to use of Pool 2 TAF funds.
      2. The TAF should be used by TBR institutions for direct student benefit, for items such as new and improved high technology laboratories and classrooms, appropriate network and software, computer and other equipment, and technological improvements that enhance instruction. Use of Pool 2 TAF is limited to the following items:
        1. Computers and other technical laboratory supplies, equipment, and software and maintenance.
        2. Network costs (WWW internet, interactive video, etc.)
        3. "Smart" or multimedia classroom equipment and classroom modifications.
        4. Lab and course staffing - student and staff assistance for lab and classroom uses; community colleges are limited to 25% maximum (Pool 2 current-year TAF revenues) for student or staff employees.
        5. Renewal and replacement reserves as necessary.
        6. New machines for faculty use when faculty are actively engaged in developing and conducting on-line courses.
        7. Faculty and staff development directly related to the introduction or application of new technology which impacts students. These guidelines should have the flexibility to place instructional technology in a faculty lab where course materials are being prepared. For example, TAF funds can be used to create faculty labs to include the purchase of computers and to conduct faculty training and course development. (Travel costs for faculty and staff are excluded; however, consultants may be hired as needed for training.)
        8. Infrastructure (wiring, network, servers, etc.) necessary to provide students maximum computing capability. A ceiling is established of 50% of the total project costs from which technology access fees can be used.
        9. Expand technology resources in library, i.e., video piped anywhere on campus, interactive video room for distance education, network for web video courses.
      3. As part of the July budget process, each institution shall prepare a detailed spending plan for the use of funds generated by the TAF. Prior to submission of July budgets, the Chancellor or his designee shall randomly select 25% of institutions for review of TAF spending plans. Each institution selected shall submit their TAF spending plan as part of their July budget. These spending plans shall be reviewed by the Chancellor or his designee for compliance with TAF use guidelines and Board policy. A report of this review shall be filed with the Board.
      4. The spending plan will be maintained by the institution and will be updated throughout the year as needed. The President shall ensure that the spending plan is prepared. At the end of the fiscal year, a summary of the actual money generated and actual use of the money shall be prepared and maintained by the institution.
      5. Compliance with these guidelines will be audited by the internal audit staff and reported to the Board as determined by the internal auditor's annual risk-based planning process or other appropriate means.
  8. Specialized Academic Fees
    1. Certain academic programs require expensive maintenance/updating of equipment and software and the employment of highly qualified staff. The high costs of instruction for these programs can be offset by establishing specialized academic fees, with the Board’s approval. To receive approval for a specialized academic fee, a program will be required to meet criteria 1., High Cost of Instruction as defined below. Additionally, the program should document meeting criteria 2.-7., as applicable.
      1. High Cost of Instruction. Programs qualifying for charging specialized academic fees must demonstrate that they are more costly than other programs offered by the institution. If appropriate, the extraordinary cost of the program must be validated including benchmarking with similar programs in the region and nation.
      2. High Demand. The number of students enrolled in the program and the student credit hours generated are sufficient to justify additional fees.
      3. High Cost of Updating/Maintaining Equipment and Software. Programs qualifying for charging specialized academic fees are expected to be those that require extensive maintenance and regular updating of equipment and/or software, all of which are very expensive. An average hardware/software cost per student credit hour serves as the basis for determining the amount of the fee.
      4. Accreditation. Meeting standards of specific accrediting agencies may also qualify a specialized program for charging specialized academic fees.  The accrediting standards that justify a fee are those that specify the possession and use of certain equipment and unique software that are extraordinarily costly and/or the employment of faculty with specific credentials that demand high salaries.
      5. High Recognition and Quality. The programs approved for specialized academic fees are expected to be distinctive and with a regional or national reputation. The program must demonstrate that it has achieved exceptional recognition in its particular enterprise.
      6. High Value to Tennessee. The program must demonstrate that it is a good investment for the State of Tennessee to justify charging extra fees to the student. The program should be distinctive and not one duplicated in other TBR institutions and should be of integral value to Tennessee.  The graduates’ earning potential and the associated benefit to the state economy should be projected, as well as the efforts taken by the institution to aid graduates in finding appropriate employment in Tennessee.
      7. Impact on Affected Students. Through surveys, questionnaires, or other suitable means, the program must demonstrate that the charging of additional fees will not diminish enrollment. The program should demonstrate that enrolled students realize that the potential earning power in the work force justifies their additional investment.
    2. Institution must submit documentation of the above applicable criteria when requesting approval of a specialized academic fee. Specialized academic course fee revenues are limited to funding related costs accumulated in the instruction function.
  9. Miscellaneous Course Fees
    1. All miscellaneous fees must be approved by TBR. Fees for courses requiring special off-campus facilities or services do not require Board approval but should reflect the cost of the facilities or services.
  10. Incidental Fees and Charges
    1. Uniform Rates and Policies - Institutions 
      1. The following fees will be uniformly charged (or, if applicable, to the extent that they remain within the set range) at all institutions both as to the amount and condition of assessment. Charges are subject to approval by the Tennessee Board of Regents.
        1. Application Fee:
          1. Undergraduate - Not less than $5.00 or more than $25.00.
    2. Institutions
      1. Returned Check Fee: $30.00 per check - nonrefundable. All institutions will charge a returned check fee that is the maximum set by state law.  This fee will apply to all returned checks received by the institution, whether from students, faculty, staff, or other parties. The Board will review state statutes each spring to determine any changes. (T.C.A. § 47-29-102)
    3. Colleges of Applied Technology
      1. Each college of applied technology will assess a nonrefundable fee for individual instructional projects pursuant to a schedule approved by the Tennessee Board of Regents.
    4. Other Fees and Charges Subject to Board Approval
      1. Institutions
        1. The following fees may be assessed by all institutions. Specific rate recommendations will be developed separately by each institution for approval by the Tennessee Board of Regents. In review of the recommendations, the Board staff will consider the consistency of fees for comparable services among institutions.
          1. Motor Vehicle Registration - nonrefundable. A fee may be levied by each institution per academic year, per fiscal year and/or per academic term for motor vehicle registration, and such fee shall be applicable to each student, faculty and staff member.
          2. Campus Access Fee - At institutions where registration of specific vehicles is not necessary a campus access fee may be assessed in lieu of a motor vehicle registration fee. It is refundable on the same basis as maintenance fees or as established by the institution.
          3. Traffic Fines - nonrefundable. These fines will apply to all employees and students.
          4. Applied Music Fees. This fee is charged for private music lessons or small group training sessions. It is refundable on the same basis as maintenance fees or as established by the institution.
          5. Late Registration Fee. A late registration fee up to $100 will be charged during the entire period of late registration. The effective date of the fee will be determined by each institution.
          6. Facilities Fee. This fee will be used to improve facilities and fund expenditures such as replacing carpets in student lounges, remodeling classrooms, etc. The fee would not be used for routine maintenance or new construction, but would be used to make improvements to areas that have an impact on students. The intended projects will be disclosed during the normal budget cycles. The fee is refundable on the same basis as maintenance fees.
      2. Institutions and Colleges of Applied Technology
        1. Transcript Fee. There will be no charge for transcripts; however, institutions and colleges of applied technology shall set a limit on a reasonable number of copies at any one time and may establish a nonrefundable charge for the cost of copying transcripts in excess of that number.
      3. Fees and Charges to be Established and Administered by the Institution.
        1. The following fees and charges may be established and administered by each institution. No specific approval or notification to the Tennessee Board of Regents will be required unless subject to other Board or State requirements. The institution will establish appropriate refund policies. 
          1. Sales of goods and services of a commercial nature, including bookstores, food services, vending, laundry and similar activities.
          2. Rental of non-student housing and facilities.
          3. Admissions fees to athletic and other events open to the public, including special events sponsored by campus organizations and activities.
          4. Sales and services of educational activities such as clinical services, publications, etc.
          5. Registration for conferences, institutes, and non-credit activities (see XIII.A.4.).
          6. Fees for use of campus facilities for recreational purposes.
          7. Parking permits and parking meters for use by guests and visitors.
          8. Colleges of Applied Technology may assess a fee for specific school instructional projects to defray incidental costs incurred by the college of applied technology in performing the project.
          9. Nonrefundable library fines, which will apply to students, faculty, staff, and other library users.
          10. Child Care Fees - Kindergarten, Preschool, Early Childhood, Day Care, or similarly defined activities. The refund policy will be established by the institution.
          11. Special Exam Fee - nonrefundable. The fee will be determined based upon cost to the institution.
          12. Standardized Test Fees - nonrefundable. The fee will be determined based upon the cost for administering the tests.
          13. Identification Card Replacement - nonrefundable.  There will be no charge for the original identification card. A fee may be set by each institution to offset the cost of replacing the card. This fee applies only to student ID cards and not to faculty and staff ID's.
          14. Change of Course or Section Fee - nonrefundable. If the change is caused by the institution, there will be no charge for the change. If two or more forms are used at one time, they will be treated as one change/form. Institutions may waive the fee for schedule changes.
  11. Deposits
    1. Breakage deposits may be recommended by the institution for Board approval for courses in which it can be shown that there is a reasonable chance of loss or damage to items issued to students. The amount of the deposit should be related to the materials issued and subject to a 100% refund.
    2. A deposit may be established by the institution for rent or lease of buildings and facilities or for the issuance of other institutional property or equipment. Deposits should be subject to a 100% refund if no damage or loss occurs. The amount of such deposits should be related to the value of the facilities or equipment subject to loss and the general ability of the institution to secure reimbursement should loss or damage occur.
  12. Other Fee and Charge Considerations
    1. Institutions may submit for Board of Regents approval fees and charges not specifically covered by those guidelines when the establishment of a fee or charge is justified by the institution.
      1. Fees may be established to control the utilization of facilities and services or to offset the cost of extraordinary requirements as a result of specific programs or activities. [Reference Tennessee Board of Regents Policy on Access to and Use of Campus Property and Facilities (No. 1:03:02:50).]
      2. When fees and charges are incorporated in agreements with outside contractors and vendors, specific rates, refunds and conditions must be clearly stated.
      3. Fees for auxiliary services must take into consideration that Auxiliary Enterprises should be a break-even operation with rates and charges generating revenue sufficient to cover all expenses as defined in operating budget guidelines.
      4. Fees established for non-credit courses and activities shall be sufficient to cover the total costs incurred in providing instruction plus a minimum of 25% of the annual instructional salary costs including contractual salary costs or personal services contracts.
      5. Students enrolled for six or more hours are eligible for full-time privileges, i.e., access to social, athletic, and cultural functions, pursuant to T.C.A. § 49-8-109.
  13. Refunds and Fee Adjustments
    1. Adjustments to all fees and charges must be in accordance with the following provisions except as previously stated, or when required by federal law or regulation to be otherwise.
    2. Pursuant to T.C.A. §§ 49-7-2301 and 49-7-2302, students called to active military or National Guard service during the semester are entitled to a 100% adjustment or credit of mandatory fees.
    3. Maintenance Fee Refunds and Adjustments
      1. Refunds are 100% for courses canceled by the institution.
      2. Changes in courses involving the adding and dropping of equal numbers of SCH's for the same term at the same time require no refund or assessment of additional maintenance fees, unless the dropping and adding involves TNeCampus courses. The change of course fee would be applicable.
      3. The fee adjustment for withdrawals or drops during regular terms (fall and spring) is 75% from the first day of classes through the fourteenth calendar day of classes and then reduced to 25% for a period of time which extends 25% of the length of the term. When the first day of the academic term falls on a Saturday, the 100% refund period is extended through the weekend until the following Monday morning (12:01 am). There is no fee adjustment after the 25% period ends. Dropping or withdrawing from classes during either the 75% or the 25% fee adjustment period will result in a fee adjustment of assessed maintenance fees based on the total credit hours of the final student enrollment.
      4. For summer sessions and other short terms, the 75% fee adjustment period and the 25% fee adjustment period will extend a length of time which is the same proportion of the term as the 75% and 25% periods are of the regular terms.
      5. All fee adjustment periods will be rounded to whole days and the date on which each fee adjustment period ends will be included in publications. In calculating the 75% period for other than the fall and spring and in calculating the 25% length of term in all cases, the number of calendar days during the term will be considered. When the calculation produces a fractional day, rounding will be up or down to the nearest whole day.
      6. A full refund (100%) is provided on behalf of a student whose death occurs during the term. Any indebtedness should be offset against the refund.
      7. A 100% refund will be provided for students who enroll under an advance registration system but who drop a course or courses prior to the beginning of the first day of class.
      8. A 100% refund will be provided to students who are compelled by the institution to withdraw when it is determined that through institutional error they were academically ineligible for enrollment or were not properly admitted to enroll for the course(s) being dropped. An appropriate official must certify in writing that this provision is applicable in each case.
      9. When courses are included in a regular term's registration process for administrative convenience, but the course does not begin until later in the term, the 75%/25% fee adjustment periods will be based on the particular course's beginning and ending dates. This provision does not apply to classes during the fall or spring terms which may meet only once per week. Those courses will follow the same refund dates as other regular courses for the term.
      10. The fee adjustment is calculated as the difference between (1) the per credit hour cost of originally enrolled hours and (2) the per credit hour cost of the courses at final enrollment after adjustments have been applied for all courses dropped. Adjustments are calculated at the full per credit hour rate less the fee adjustment credit at the applicable fee adjustment percentage (regardless of the original number of hours enrolled). Not all drops/withdrawals will result in fee adjustments.
    4. Out-of-State Tuition Refunds and Fee Adjustments
      1. The fee adjustment provision for out-of-state tuition is the same as that for maintenance fees. The 75% fee adjustment period and the 25% fee adjustment period will follow the same dates as the fee adjustment periods for maintenance fees. When 100% of maintenance fees are refunded, 100% of out-of-state tuition also is refunded. Calculation procedures are the same as those specified for maintenance fees.
    5. Debt Service Fee Refunds
      1. Debt service fees will be subject to the same refund policy as maintenance fees.
Sources: 

Authority

T. C.A. §§ 47-29-102, 49-7-102, 49-7-113, 49-7-2301, 49-7-2302, 49-8-109

History 

December 2, 1977 TBR meeting.  Revised March 14, 1980 TBR meeting; November 13, 1991 presidents meeting; November 8, 1982 presidents meeting; July 1, 1984; November 1, 1988; May 15, 1990 presidents meeting; August 14, 1990 presidents meeting; November 1§0, 1992 presidents meeting; August 10, 1993 presidents meeting; November 9, 1993 presidents meeting; August 9, 1994 presidents meeting; May 8, 1995 presidents meeting, August 8, 1995 presidents meeting, November 8, 1995 presidents meeting, February 6, 1996 presidents meeting, May 14, 1996 presidents meeting, November 12, 1996 presidents meeting, May 6, 1997 presidents meeting, July 16, 1997 called Board meeting, November 5, 1997 presidents meeting, February 17, 1998 presidents meeting via conference call, August 25, 1998 presidents meeting, May 9, 2000 presidents meeting, August 8, 2000 presidents meeting, November 8, 2000 presidents meeting, February 13, 2001 presidents meeting, August 21, 2001 presidents meeting, May 21, 2002 presidents meeting, February 11, 2003 presidents meeting, May 20, 2003 presidents meeting, February 10, 2004 presidents meeting, August 17, 2004 presidents meeting, February 8, 2005 presidents meeting, May 17, 2005 presidents meeting, February 8, 2006 presidents meeting, May 16, 2006 presidents meeting, August 16, 2006 presidents meeting, May 15, 2007 presidents meeting, August 21, 2007 presidents meeting, November 6, 2007 presidents meeting, February 17, 2009 presidents meeting; May 12, 2009 presidents meeting; August 11, 2009 presidents meeting; November 10, 2009 presidents meeting; February 16, 2010 presidents meeting; February 15, 2011 presidents meeting; May 17, 2011 presidents meeting; August 16, 2011 presidents meeting; May 16, 2012 presidents meeting; August 21, 2012 presidents meeting; Revised at Presidents Meeting, February 4, 2014; Revised at Presidents Meeting, August 18, 2015; Revised at Presidents Meeting, November 10, 2015; Presidents Meeting February 2, 2016; August 8, 2017.

Policy Number: 
B-041
Policy/Guideline Area: 
Business and Finance Guidelines
Applicable Divisions: 
Community Colleges
Purpose: 

This guideline is established to provide a necessary level of control and consistency among the TBR community colleges in the administration of intercollegiate athletic programs. The provisions set forth below represent standards to ensure program accountability, while allowing for institutional discretion and promoting intercollegiate athletic competition within the limitations of campus resources.  The guideline supersedes all previous statements or agreements and is effective upon approval by the Tennessee Board of Regents.

Policy/Guideline: 
  1. Introduction
    1. Effective July 1, 2003, each community college is authorized to spend a maximum amount (expenditure cap) from student maintenance fee allocations as described by TBR staff and communicated in the annual budget guidelines.
    2. The maximum amount will be reviewed annually by Board staff and may be adjusted based on such factors as student fee increases, inflation, and mandated salary and employee benefit increases.
    3. This cap excludes expenditures from gate receipts, concession receipts and restricted funds.
      1. Post-season competition expenses for the TJCAA state and regional tournaments as well as expenses to participate in national tournaments for which teams qualify based on success at the state and regional levels are also excluded from the expenditure cap.
      2. Additionally, out-of-state tuition waivers for performance based scholarship expenditures are excluded from the cap.
        1. The amount of out-of-state waivers for performance based scholarship expenditures, however, will be provided in a manner determined by the TBR staff.
  2. Program Authorization
    1. Each community college is authorized to participate in any of the following intercollegiate sports: Men’s basketball, baseball, tennis and golf; and women’s basketball, softball, tennis, and golf. Tennis and golf are authorized for co-educational sports.
    2. Participation in additional sports will require written justification by the president and approval by the Chancellor.
  3. Revenue
    1.  Athletic revenue may be derived from student maintenance fee allocation, gate receipts, concession receipts and restricted fees.
  4. Expenses 
    1. Athletic expenses include salaries, employee benefits, supplies, materials, travel, scholarships, communications, etc.
      1. Salaries and Employee Benefits 
        1. The salary and benefit costs for faculty members who have athletic responsibilities (athletic director, head coach, assistant coach, etc.) will be allocated in accordance with the release time given.
        2. Therefore, if a faculty member receives three hours release time per semester for assistant coach duties, the faculty member’s salary and benefit costs will be allocated between instruction and athletics as follows:
          1. (3 hours release time/15 hours full-time faculty load) x salary (or benefits) = portion allocated to athletics
        3. The salary and benefit costs for head coaches not assigned to the classroom will be allocated in accordance with the percentage of effort worked, with a minimum of 50% allocated to athletics.
        4. The salary and benefit costs for assistant coaches not assigned to the classroom will be allocated in accordance with the percentage of effort worked, with a minimum of 25% allocated to athletics.
        5. The salary and benefit costs for athletic directors not assigned to the classroom will be allocated in accordance with the percentage of effort worked, with a minimum of 20% allocated to athletics.
        6. The salary and benefit costs for other full-time and part-time employees, such as clerical support, sports information personnel, etc., will be allocated in accordance with the percentage of effort worked.
        7. The salary and benefit costs of custodial, security, and ticket office personnel are considered immaterial and will not be allocated to athletics.
      2. Operating Costs
        1. All operating costs which are charged to other units at the institution, such as telephone, postage, and motor pool expenses, are to be allocated to athletics on the same basis that the operating costs are allocated to other units.
      3. Equipment and Supplies
        1. Equipment which is purchased for both athletics and physical education is to be prorated on a 50/50 percent basis.
        2. Equipment which is specifically purchased for athletics is to be charged in total to that unit.
        3. Expenses for items that are utilized for more than one fiscal year, such as uniforms, are to be charged to the fiscal year in which the items are encumbered.
  5. Out-of-State Tuition Performance Based Scholarships
    1. A maximum of 25 out-of-state tuition performance based scholarships may be excluded from the athletic cap at any given time.
      1. For example, if the institution awards fifteen scholarships in one academic year and all fifteen students return the next academic year, the institution is limited to only ten additional scholarships.
      2. The costs of these scholarships are to be expended to a group account in the social/cultural development sub-category in the Student Services function but are not included in general fund support calculation.
  6. Post-Season Competition
    1. Post-season expenses must be charged to separately identified account(s), per sport, within the athletic budget and are not subject to the expenditure cap.
  7. Sports Governance
    1. TBR community colleges shall operate within the limitations established by the NJCAA as referenced in the association’s NJCAA Handbook and Casebook for recruiting, governance, scholarships, and all other aspects of the colleges athletic programs.
  8. Housing
    1. TBR community colleges are not authorized to lease housing for student athletes.
  9. Federal and State Regulations
    1. Consistent with Board policy, each president is responsible for ensuring institutional compliance with all pertinent federal and state regulations relative to student participation in intercollegiate athletic programs.
  10. Conference Membership
    1. This guideline is based on the understanding that each TBR community college with athletic programs shall hold memberships in the TJCCAA conference and the NJCAA conference.
  11. Exceptions
    1. Exceptions to this guideline must be approved by the Chancellor.  
Sources: 

Authority

T.C.A. § 49-8-203

History

March 20, 1981 SBR meeting.  Revised June 26, 1981 and March 18, 1983, SBR meetings; July 1, 1984; August 19, 1984; July 1, 1985; July 1, 1986; July 1, 1987; February 16, 1988; July 1, 1988; May 10, 1994; November 9, 1994; May 14, 1996; February 16, 2000; May 9, 2000; August 21, 2001; May 20, 2003; and May 17, 2005 Presidents Meeting; August 21, 2012 presidents meeting.

Policy Number: 
B-026
Policy/Guideline Area: 
Business and Finance Guidelines
Applicable Divisions: 
TCATs, Community Colleges, System Office
Purpose: 

These guidelines set forth the leasing procedures for all institutions governed by the Tennessee Board of Regents. 

Policy/Guideline: 
  1. Approvals Required
    1. Institution as Lessee and Lessor.
      1. All agreements involving or related to the lease of real property for a term of more than five (5) years or a consideration of more than $150,000 per year shall be approved by the Chancellor, including any amendment or cancelation (TBR Policy No. 1:03:02:10).
      2. Documents for all leases and lease amendments with consideration of more than $150,000 per year or a term longer than five (5) years shall be approved by the State Building Commission in accordance with T.C.A. § 12-2-115 and the Tennessee Higher Education Commission.
      3. Signatures required include:
        1. The Lessor (signature shall be acknowledged by a notary public).
        2. President of the Institution (signature shall be acknowledged by a notary public).
        3. Chancellor or designee.
          1. State Attorney General and Reporter in compliance with T.C.A. § 12-2-115.
          2. Commissioner of General Services if procured by STREAM.
          3. Governor (this signature is required for lease-outs). 
    2. Leases for more than $150,000 per year or for more than five (5) years.
      1. All proposed leasing actions for real property with consideration more than $150,000 per year or for a term of more than five (5) years shall be submitted to the State Building Commission and the Tennessee Higher Education Commission by the Office of Facilities Development, Tennessee Board of Regents for review and analysis prior to taking action by the institution.
      2. ​Leases approved during the annual budget review process will not require prior approval of the State Building Commission Executive Sub-Committee. (SBC Policy)
      3. ​After review and analysis, the State Building Commission and the Tennessee Higher Education Commission shall provide comments to the Tennessee Board of Regents. (SBC Policy)
    3. Leases for $150,000 or less per year and for five (5) years or less where the institution is the Lessee or Lessor, using one of the following approved forms: the Tennessee Board of Regents Standard Lease Agreement, Mutual Use Agreement, Transient Use Agreement, or Tenant Use Agreement, shall be approved by:
      1. President of the institution
      2. The Chancellor 
    4. Leases for which operating funds will be requested or for more than five (5) years.
      1. Any lease which is for a term longer than five (5) years or in which the total of the consideration, maintenance costs, utility costs and/or custodial costs are estimated to exceed $150,000 per year, and funding for same is requested through state appropriations, shall be approved by the Tennessee Higher Education Commission (THEC Policy).
  2. Non-Discrimination
    1. Institutions engaging in a real estate transaction, including sale, rental or lease, shall not discriminate on the basis of race, color, creed, religion, sex or national origin. See T.C.A. § 4-21-601.
    2. No state employee or agent shall enter into a commercial agreement on behalf of the state with a club which denies to a person entry, use of facilities or membership or unreasonably prevents the full enjoyment of such club on the basis of sex, race, creed, color, religion, ancestry, national origin or disability. See T.C.A. § 4-21-803.
  3. Recording of Leases
    1. Leases in which the institution is the Lessee which require State Building Commission approval shall be recorded by the Commissioner of General Services in the county or counties where the property is located (per T.C.A. § 12-2-105).
  4. Advertising for Leased Space
    1. Where the institution is the lessee, advertising shall be required in all transactions involving new, succeeding, superseding leases or lease renewals except:
      1. Where the annual rent does not exceed $50,000 or where the term of the lease is one (1) year or less.
      2. Where property is owned by a governmental agency and leased to another governmental agency.
      3. Where a supplemental agreement is made to an existing lease for additional space at a negotiated price without modifying the original lease term (Reference T.C.A. § 12-2-114).
      4. Where the space required by the entity has special and unique requirements as determined by the Commission.
  5. Special and Unique Space
    1. The space to be leased has characteristics, such as location, size, or quality which can only be satisfied by one landowner, as determined by a reasonable survey, and will have an annual rent of less than $50,000.
    2. The space to be leased will be let for less than 30 days; will have a total cost of $50,000 or less; and is for an auditorium, hearing room, conference or related space.
  6. Forms and Documentation Required
    1. Submit to the Chancellor one (1) copy each of the following forms at the appropriate times described above. Copies of all forms are available from the Office of Facilities Development upon request.
      1. Space Action Request Form 
        1. One (1) copy required with initial submittal of request for leased space.
      2. State University and Community College System of Tennessee (Tennessee Board of Regents) standard Lease Agreement Form
        1. Minimum of three (3) copies required after approval has been given to enter into a lease agreement.
        2. Use the Tennessee Board of Regents standard Lease Agreement Form unless prior approval has been obtained to use any other form.
        3. There should be no changes or additions to the standard Lease Agreement Form without prior approval.
      3. Statement of Financial Interest for Leased Property
        1. For all leases subject to the State Building Commission approval, when the institution is the Lessee, the Lessor shall identify persons with a financial interest in the leased property on the Statement of Financial Interest for Leased Property when submitting the lease agreement.
      4. Conflict of Interest
        1. No individual, company, or other entity involved in the evaluation or negotiation of proposals should have a financial interest or have the appearance of a conflict of interest unless disclosed and addressed in accordance with SBC Policy, Item 12.
        2. A written conflict of interest disclosure documenting the independence of each person involved must be completed and retained as part of the procurement file. 
      5. Space Action Request, Office Space Requirements Analysis, Finance and Administration Form RSM-1A
        1. Document space needs on this form, adapting as necessary to include classroom and class laboratory space needs and submit with initial submittal of request for leased space.
      6. Supplemental Data Questionnaire, Finance and Administration Form RSM-1B
        1. Document space needs on this form and submit with initial submittal of request for leased space.
      7. Certification of Funds Available
        1. For all leases subject to State Building Commission approval, a letter signed by the President of the institution or the Chancellor certifying that funds are available must accompany the lease proposal.
        2. Institution Certification of Funds shall be acknowledged and certified by Vice Chancellor for Business and Finance.
      8. Summary of Analysis of Lease Proposals Received
        1. If advertising and receipt of lease proposals is performed by the institution, a summary of analysis of lease proposals must accompany the lease proposals including cost analysis.
      9. Enrollment Projections and Program Documentation
        1. Provide historical enrollments and enrollment projections and documentation of programs to be offered at the site of the proposed leased facility shall accompany the lease proposal as justification for the need to lease space.
  7. State Statutes on State Leases & Disposals of Real Property
    1. The following State Statutes on State leases and disposals of real property are referenced for your information. Copies are available from the Office of Facilities upon request.
      1. T.C.A. § 4-15-102 - State Building Commission - Powers and Duties
      2. T.C.A. § 12-2-112 - Disposal of Surplus Interests in Real Property and Energy Resources
      3. T.C.A. § 12-2-114 - State Leases - Procedure
      4. T.C.A. § 12-2-115 - Approval of Lease Instrument where State is Lessee or Lessor
      5. T.C.A. § 49-8-111 - Powers Regarding Property
  8. Lease Policies of the State Building Commission
    1. Item 7, Leases of Real Property as published in By-Laws, Policy and Procedure of the State Building Commission of Tennessee, compiled February 2014 is referenced for your information. Copies are available from the Office of Facilities upon request. 
Sources: 

Authority

T.C.A. § 49-8-203; All state statutes referenced in this guideline.

History

Presidents Meeting, May 14, 1991; Presidents Meeting November 5, 1997; Presidents Meeting February 13, 2007. Revised at Presidents Meeting November 11, 2015.

Policy Number: 
B-025
Policy/Guideline Area: 
Business and Finance Guidelines
Applicable Divisions: 
TCATs, Community Colleges, System Office
Purpose: 

The purpose of this guideline is to establish procedures for the acquisition and disposal of real property at institutions governed by the Tennessee Board of Regents. 

Policy/Guideline: 
  1. Introduction
    1. This guideline establishes procedures for the acquisition and disposal of real property in fee interest.
      1. Authorization
        1. Only the Chancellor and Board have the authority, whether by gift or purchase, to acquire and dispose of real property.
      2. Title of Property Acquired
        1. Property that is acquired shall be titled in the name of the Tennessee Board of Regents and for the State University and Community College System of Tennessee for the use and benefit of the institution.
      3. Master Plan
        1. Property that is proposed for acquisition or disposal must be identified in an approved Facilities Master Plan for subject institution prior to taking any action.
        2. The acquisition of gift property does not apply to this condition.
      4. State Building Commission
        1. With the exception in 4c below of gifts of real property, the acquisition and disposal of any interest in real property in fee interest shall be subject to the approval of the State Building Commission Executive Sub-Committee and shall be done in accordance with procedures established by the State Building Commission (Reference T.C.A. §§ 4-15-102, 12-2-112 and 49-8-111).
        2. The following completed documents (five copies each) shall be submitted to the Chancellor to obtain approval to acquire or dispose of real property:
          1. Form RPM 1 Recorded Deed to Property Land Acquisition Questionnaire; or
          2. Land Disposal Questionnaire;
          3. As applicable Survey of property;
          4. If needed, Tax Assessors Map Facilities Evaluation Survey; and, if applicable,
          5. Environmental Identification
        3. Only the Chancellor and Board may accept gifts of real property and may dispose of real property acquired by gift or devise; however, acquisition of any interest in real property by gift or devise that obligates the institution, Tennessee Board of Regents or state of Tennessee to expend state of Tennessee funds for capital improvements or continuing operating expenditures shall be approved by the State Building Commission Executive Sub-committee in accordance with T.C.A. § 4-15- 102(d)(2) prior to acceptance by the Chancellor and Board (see TBR Policy No. 4:01:04:00).
        4. No deed transferring title of property to the Tennessee Board of Regents shall be recorded without the written approval of the Chancellor and in the instance of 4.c. above, State Building Commission approval shall be confirmed by the Chancellor prior to recording the Deed.]
      5. Inspection
        1. Facilities Evaluation
          1. If property to be acquired includes any structures, a facilities evaluation survey shall be conducted of each building.
          2. All required renovations and/or alterations to make the facility(ies) functionally usable in accordance with all applicable codes and current standards of use shall be evaluated with estimated cost to complete and source of funds identified prior to any action to acquire.
        2. Environmental Identification
          1. Prior to any action to acquire real property, the property and all structures, if any, shall be inspected and tested for the identification of any contaminants, including asbestos, PCBs, underground storage tanks, hazardous wastes and other environmental concerns.
          2. If any contaminants are identified, a plan for their disposal or neutralization shall be included with the request to acquire subject property, including estimated costs and identification of responsibility for abatement.
      6. Relocation Assistance
        1. Persons, businesses, farms and non-profit organizations relocated by State real property acquisition projects are eligible for relocation assistance in accordance with the provisions of T.C.A. § 13-11-101 et seq., and the Federal Uniform Relocation Assistance and Land Acquisition Policies Act of 1970, as administered by the Department of Finance and Administration.
      7. Proceeds from Sale of Real Property
        1. The receipts from the sale or conveyance of real property shall be deposited in the capital outlay fund of the selling institution in accordance with TCA 49-8-111.
        2. However, if the receipts are the result of a devise or gift which designated the purpose of the gift for a particular use, any funds from a sale or conveyance of the property may be transferred from the capital outlay fund of the selling institution to the appropriate account in order to effectuate the donor's intent. 
Sources: 

Authority

T.C.A. § 49-8-203; All state statutes referenced in this guideline.

History

May 14, 1991 Presidents Meeting; revised May 12, 1992; revised February 13, 2007.

Policy Number: 
B-022
Policy/Guideline Area: 
Business and Finance Guidelines
Applicable Divisions: 
Community Colleges
Purpose: 

In conjunction with the provisions of TBR Policy Nos. 4:01:02:30 and 4:02:09:00 each institution governed by the Tennessee Board of Regents shall have a campus facility master plan which should address building development for the institution's mission and enrollment growth, land acquisition and disposal, vehicular and pedestrian circulation, parking facilities, outdoor physical education, recreation and athletic facilities (where applicable), utilities and landscaping. 

Policy/Guideline: 
  1. Campus Facility Master Plans
    1. Campus facility master plans should be internally reviewed by campus staff at least every two years.
      1. If an update of the existing master plan is deemed necessary by the President, the campus should document the need and initiate a request to retain a professional consultant through the Board office.
    2. New master plans and updates shall be prepared by professional consultants appointed by the State Building Commission. They shall be approved by the Tennessee Board of Regents, submitted to the Tennessee Higher Education Commission for review and comment and approved by the State Building Commission.
    3. New building construction or addition projects should be addressed in the master plan prior to the submission for funding to the Tennessee Board of Regents.
    4. The costs of obtaining consultant services for campus facility master plans should be funded from institutional sources. 
Sources: 

Authority

T.C.A. § 49-8-203

History

TBR Presidents Meeting November 13, 1990; Revised November 8, 2006 Presidents Meeting.

Policy Number: 
B-020
Policy/Guideline Area: 
Business and Finance Guidelines
Applicable Divisions: 
TCATs, Community Colleges
Purpose: 

The primary mission of institutions in the Tennessee Board of Regents System is the creation and dissemination of knowledge. To carry out this mission, it is often desirable for the institution and its affiliated units to charge fees for providing goods and services that enhance, promote, or support its instructional, research, public service, and all other educational and support functions in order to meet the needs of the students, faculty, staff and members of the public participating in institutional events.

Educational business activities shall be established and carried on only when pursuant to, and in accordance with, an authorization and statement of purpose approved by the institution's president or designee.

The purpose of Section II. is to provide uniformity in the classification and operation of auxiliary enterprises at the institutions in the Tennessee Board of Regents System. Also provided are examples to supplement the various System policies, procedures, and reports concerning the operation of auxiliary enterprises. Reference is made to reporting forms which shall be provided by the Board staff.

Definitions: 
  • Definitions of Educational Business Activity and Auxiliary Enterprises are given as part of the guideline.
Policy/Guideline: 
  1. Educational Business Activity
    1. Definition of Educational Business Activity - Each educational business activity shall meet the following three conditions:
      1. The activity is deemed to be an integral part in the fulfillment of the institution's educational, research, public service, and campus support functions, and other educational and support activities, without regard to profit.
      2. The activity is needed to provide an integral good or service at a reasonable price, on reasonable terms, and at a convenient location and time.
      3. The activity is carried out for the primary benefit of the campus community but with sensitivity to the total community
    2. Concept of Unrelated Activities
      1. All institutions should comply with applicable laws and regulations pertaining to such activities, and educational business activities not falling within the conditions established above may be unrelated business income activities and subject to unrelated business income tax.
  2. Auxiliary Enterprise Operation
    1. Role and Scope of Auxiliary Enterprise Operation
      1. Definition of Auxiliary Enterprises:
        1. An auxiliary enterprise furnishes a service to students, faculty, or staff, and charges a fee directly related to, but not necessarily equal to, the cost of the service.
        2. The public may be served incidentally in some auxiliary enterprises.
        3. They are essential elements in support of the education program, and conceptually should be regarded as self-supporting. Little or none of the revenue comes from educational and general sources, but in the case of housing and food services, there may be a limited amount of sales to the institution.
        4. Other examples of auxiliary enterprises are college union, college stores, rental facilities, institutionally operated vending services, recreational areas, faculty clubs, laundries, certain parking facilities.
        5. This definition has been approved by the Tennessee Higher Education Commission, the State Comptroller, and the State Department of Finance and Administration in the publication Financial Reporting for Tennessee Public Colleges and Universities, with the following exceptions:
          1. Revenue and expenses of student centers (college unions), but not the auxiliaries housed therein, are to be classified under the category of student services.
      2. Pursuant to the foregoing, the following activities should be classified as auxiliary enterprises:
        1. Housing, including dormitories, apartments, and all other housing.
        2. Food Services.
        3. College Stores, including bookstores, hobby shops, mini-markets, etc.
        4. Vending Services, including food vending and other non-food vending.
        5. Post Offices, limited to the cost of revenue-related services, and excluding campus distribution.
        6. Parking facilities, if subject to an indebtedness which is being liquidated through revenues or if otherwise operated in a manner within the definition of auxiliary enterprises.
        7. Laundries, beauty shops, barber shops, etc.
        8. Any other activity which meets the approved definition.
        9. Student recreation centers subject to indebtedness.
      3. Users of Auxiliary Enterprises
        1. Auxiliary enterprises exist for the purposes of providing services to students, faculty, and/or staff, and any service to the public should only be incidental in nature.
          1. For example, student housing facilities are operated for the benefit of students, and occupancy should be limited to students and student housing personnel, provided that, on a space available basis, such housing may be provided to faculty or staff.
          2. In the case of food services, bookstores, etc., while non-students who are guests or who otherwise have business on the campus may be served, the institution or school should not actively seek non-campus trade.
      4. Concept of Auxiliary Enterprises as Self-Supporting
        1. The goal for all auxiliary enterprises, both individually and cumulatively, is for revenues to at least equal expenditures and transfers.
          1. It is recognized that some auxiliary enterprises may have difficulty in providing necessary services at reasonable prices on a break-even basis, but justification for each such enterprise must be provided to the Board through the annual operating budgets analysis.
        2. All rate structures should be recommended and set on the basis of projected expenditures and transfers.
    2. Purchasing of Goods and Services for Auxiliary Enterprises
      1. General
        1. Purchases for auxiliary enterprises generally fall into two major categories:
          1. Purchases for resale; and
          2. Purchases for consumption or use in the operation of the auxiliary enterprise.
            1. Examples of purchases for consumption or use by the auxiliary enterprises are furnishings for dormitory rooms, general supplies, office supplies, etc.
            2. Purchases for resale include items which are to be resold, including textbooks and other course related materials and supplies, and other miscellaneous items which are needed on a regular basis by the users of the enterprises.
        2. Purchases for auxiliaries are subject to the provisions of the Board purchasing policy (no. 4:02:10:00).
    3. Classification of Revenues and Expenditures for Auxiliary Enterprises
      1. All Revenues and Expenditures will be classified first under the appropriate specific auxiliary enterprise. Further details relative to appropriate classifications are provided below.
      2. Classification of Revenues: The source of funds is the primary determinant of revenue classification. Only nominal amounts may be reported as "Other" or "Miscellaneous". With regard to the Federal Work Study Program, an amount equal to the federal share of FWS salary expenditures shall be reported as restricted revenue. Supplemental schedules must clearly identify both restricted and unrestricted revenues. On all applicable statements, restricted auxiliary revenue should be reported under Auxiliary Enterprises regardless of the source. Restricted auxiliary revenues should be reflected as auxiliary enterprises revenue rather than grants and in the same amount as the auxiliary enterprises restricted expenditures.
      3. Classification of Expenditures: Expenditures should basically be classified by activity, with breakdowns by object classification or grouping of objects. The following specific provisions shall be applicable to classifications of expenditures:
        1. Staff benefits and FWS expenditures should be reported by activity. In Athletics, the “Grant-in-Aid” classification should include scholarships, room and board, books, fees and other costs directly associated with individual student athletes.
        2. Where several activities are managed by one office, the managing office may be listed as a separate activity with object classifications shown. The last line of the operating expenditures shall show the allocation of these costs to the operating activities. The management of a group of activities may also be reported under one of the activities by detail object, with the appropriate allocation shown as the last item under operating expenditures.
        3. Operating expenditures for prorated plant costs may be shown as one line, or they may be shown in further breakdowns under the Plant Allocation heading. Extraordinary Maintenance costs may be listed separately under plant operations. However shown, the Maintenance and Operation of Plant Costs must be clearly identifiable.
        4. An “Excess (Deficit) of Revenues over Expenditures” sub-total before transfers must be included.
        5. Transfers must be classified as Mandatory or Non-Mandatory, and detailed by the fund to which the transfer is made.
        6. All direct costs will be charged to the appropriate activity. Where actual incurred costs apply to more than one activity, the costs will be allocated or prorated to each auxiliary enterprise. Salaries and wages will be utilized as the allocation base, unless otherwise designated. For example, vending and contracted food services must have the appropriate cost of the person(s) or activity which coordinates or manages them allocated as an expenditure. These are direct costs which are not replaced by institutional support allocations.
      4. Allocation of Institutional Support to Auxiliaries:
        1. Auxiliary enterprises shall be charged directly for the specific and specialized services or benefits they receive, whether the initial charge is in Institutional Support, Student Services, or some other functional area. For example, if an employee is directly responsible for the management of an Educational and General activity and an Auxiliary Enterprise activity, their salary and related expenses should be prorated.
        2. Institutional Support functions which provide no benefit to Auxiliary Enterprises may not be allocated, such as the chief academic officer, catalogs and bulletins, and graduation expenses.
        3. All other institutional support costs shall be allocated on the basis of salaries and wages. “Direct” charges which are charged to auxiliaries should be broken down by object classification between salaries and wages and all other objects.
        4. Institutional Support allocation should be a separate line item expenditure on supplemental reports.
      5. Plant Costs Allocated to Auxiliaries:
        1. Proportionate amounts of all Operation and Maintenance of Plant costs shall be allocated to Auxiliary Enterprises. The allocations shall be made on the basis of the most accurate information and the most reasonable basis in accordance with the following provisions.
        2. A direct charge basis shall be used when the institution maintains a work order or other costing system which records this information. The total of all costs incurred by the Maintenance and Operation of Physical Plant must be included in the costing system. Where only a portion of the costs is accounted for by direct job orders, the balance of the costs shall be prorated on the basis of square footage or on the basis of the direct charges which have been identified.
        3. In the absence of accurate costing information, the Maintenance and Operation costs shall be allocated on a square footage basis. Where adjustments are made to any of the allocations, for example, dormitories which are not used in the summer, similar adjustments shall be calculated and recorded for Educational and General Facilities which may not have been in full use during all periods of the year. Due to the difficulty of establishing a reasonable basis for allocation, Care of Grounds costs may also be allocated on a square footage basis.
        4. It is permissible to allocate some cost elements, such as Custodial Services and Maintenance and Repairs, on a direct charge basis and other costs such as Utilities on a square footage basis. The administrative expense of Maintenance and Operation must be allocated on the same basis that other direct services are allocated. Where a square footage basis is used, the administrative costs must be allocated on the basis of the relative direct charges made to auxiliaries. Any allocation basis other than direct charge of square footage must be approved by the Board staff.
      6. Replacement of Equipment and Facilities
        1. Any mandatory allocations for accumulating funds for the replacement of equipment and facilities must be made in accordance with the bond indenture or other binding external agreements. In financial reporting, these items shall be listed under Mandatory Transfers as transferred to Funds for Renewal and Replacement.
        2. Non-Mandatory Transfers may be permitted, based upon the excess of revenues over expenditures and other transfers. Where a particular auxiliary or group of auxiliaries, such as dormitories, does not have a sufficient excess of revenues over expenditures and other transfers, Non-Mandatory Transfers to Renewals and Replacements are not permitted.
      7. Debt Service
        1. Mandatory Debt Service Requirements must be shown as transfers to Funds for the Retirement of Indebtedness in accordance with external binding agreements such as bond indentures and agreements with the Tennessee State School Bond Authority. Strict adherence to the absolute transfers required by these external agreements must be made. Where agreements require only that the earnings will be available for debt retirement but do not specify where deficiencies in Debt Services Requirements are to be generated by the institution, the Mandatory Transfer may not include any amount in Excess of Revenues Over Expenditures and other Transfers.
        2. Other transfers to Retirement of Indebtedness will be based strictly upon the nature of the transaction. Only where funds to increase Debt Service Requirements are planned by the institution to come from the auxiliary activity may Non-Mandatory Transfers to Debt Service be shown. Where funding for Retirement of Indebtedness is made from debt service fees assessed to all students from general funds or from other sources, the addition to Retirement of Indebtedness funds shall not be shown as an auxiliary transfer.
Sources: 

Authority

T.C.A. § 49-8-203

History

May 22, 1979 SBR Presidents meeting. Revised July 1, 1984; February 16, 1988; November 8, 2006; Revised at Presidents Meeting, February 4, 2014.

Pages

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