Sec. 602.4. Revenues and appropriations/expenditures to be reported in the preliminary operating budget estimate, college operating budget request, amendments to college operating budget request and annual financial report

(a) The college operating budget request shall include all estimated revenues to be received by the college for operating expense purposes. These revenues may include but are not limited to the following:

(1) student tuition;

(2) State aid;

(3) sponsor contribution;

(4) charges to nonresidents not presenting certificates of residence;

(5) out-of-state resident tuition;

(6) operating chargebacks to other counties;

(7) gifts and donations;

(8) endowment income;

(9) unclassified revenue—local sponsor share;

(10) organized activity income;

(11) service fees, including parking fees and fines, and library fines;

(12) interest and earnings on all operating funds and reserve for capital cost chargebacks;

(13) rental of real property, including rental income on college-owned houses and rental revenue received from bookstore and food-service concessionaires;

(14) rental of equipment, including locker rentals;

(15) forfeiture of tuition deposits;

(16) sales of scrap and excess material;

(17) other minor sales;

(18) sales of equipment;

(19) insurance recoveries;

(20) other compensation for loss, including reimbursement for laboratory breakage;

(21) refunds of prior year's expenses;

(22) unclassified revenues—offset to expenses, including vending machine, bookstore and food-service concession income; telephone commissions; employee jury duty fees paid to the college, parking fees and fines, and library fines;

(23) Federal aid provided in the name of the college; and

(24) for other allowable items, please refer to the manual for community college business officers.

(b) Federal, private or separately funded State revenues received for 100 percent support of student financial aid programs should not be included in the college unrestricted operating budget. However, complete records should be maintained on these funds and any liabilities should be reported in the operating fund balance sheet.

(c) The college operating budget request shall include all valid appropriations for restricted and unrestricted operating expense purposes. These appropriations may include appropriate expenses for the following functions:

Instruction

Public service

Academic support

Libraries

Other

Student services

Institutional support

General administration

General institutional support

Operation and maintenance of plant

Scholarships and fellowships (restricted)

Auxiliary enterprises (restricted)

Scholarships

(d) The following is a listing of specific operating expenses which are allowable for State aid and support by student tuition revenues. This listing is not intended to be all-inclusive.

(1) Compensation for personal services.

(2) Lease and maintenance costs for rented physical space and equipment where used for college purposes. Rental leasing of instructional space shall be subject to the approval of the chancellor or designee.

(3) Property and liability insurance. The practice of the local sponsor in regard to insurance coverage may govern in determining allowable insurance charges. Insurance premiums are an allowable expense. If the local sponsor is a self-insurer, no part of the charges should be included in the budget, except for compensation for losses incurred.

(4) Consumable supplies.

(5) Repairs to buildings, grounds and equipment. For purposes of this section, a repair is a maintenance expenditure for the purpose of maintaining a facility in an ordinarily efficient operating condition. A repair does not significantly add to the value of the facility, nor does it appreciably prolong its life. It merely keeps the property in an efficient operating condition over its probable useful life for the uses for which it was acquired.

(6) Travel expenses for college purposes, including expenses related to the recruitment of professional staff.

(7) Communications and postage expenses for college purposes.

(8) Printing and advertising expenses for college purposes.

(9) Library acquisitions. For purposes of this section, the initial $50,000 expenditure for instructional resources for each college or each campus of a multiple campus community college, where such multiple campuses have been approved by the university trustees, must be included as a capital expense.

(10) Institutional membership in local, State and national education-related organizations and associations.

(11) Conference fees and travel expenses related to staff attendance at conferences, where such conferences are related to college purposes.

(12) Expenses related to foreign student exchange programs.

(13) Moving expense of newly appointed members of the professional staff.

(14) Fees and costs for evaluation and accreditation by Middle States Association of Colleges and Secondary Schools and other accreditation associations.

(15) Graduation exercise expenses for speaker, reception for honored guests, music, decorations for platform, and cost of caps and gowns for guests, speakers, college trustees, faculty and administrative staff.

(16) Expenses relating to refreshments, luncheons and dinners if for the purpose of conducting official college business.

(17) Expenses of moving college furnishings and equipment.

(18) Costs of training programs for college staff, including on and off-campus seminars for professional staff.

(19) Expenses in accordance with the terms of a collectively negotiated agreement.

(20) Expenses related to appropriate nonrevenue producing community service programs.

(21) Equipment costs not included in the capital construction budget.

(22) Employer contributions to fringe benefits negotiated under the terms of a collectively negotiated agreement.

(23) Expenses related to a college-operated alumni program.

(24) Other general education expenses.

(25) Personal services and fringe benefit expenses for coaches.

(26) Scholarships.

(e) The following is a listing of operating expenses which are not allowable for State aid and support by student tuition revenues:

(1) Expenses of service area educational programs where such programs have not been approved by State University.

(2) Individual memberships in professional organizations and associations, except in those instances where institutional memberships beneficial to the educational purposes of the college are not available, in which instances the individual membership fee will be allowable for State aid purposes.

(3) Contingency accounts.

(4) Food service and bookstore expenses and losses where such services are subcontracted.

(5) Rental of caps and gowns for students.

(6) Student activity functions, such as student receptions, socials, publications, and communication expenses related to student activity programs and faculty-student association activities.

(7) Rental and maintenance costs for property not used for college purposes.

(8) Expenses relating to the activities and administration of faculty-student associations.

(9) Expenses relating to the operation and administration of dormitories.

(10) Penalty fees for overdue payment of legal obligations.

(11) Costs of food, beverages and entertainment for college social functions.

(12) Collection agency fees for delinquent student accounts. This shall not be construed to prohibit the engagement of collection agencies to collect overdue student accounts. However, the collection agency fee shall be added to the student account.

(13) Matching funds for off-campus college work-study programs.

(14) Administrative overhead expenses otherwise chargeable to Federal programs.

(15) Depreciation.

(16) Costs for transportation of intercollegiate athletic teams or of students to attend athletic contests shall be a direct charge to the student-athletic association, faculty-student corporation, or other similar organization. Other expenses, such as payment of officials, purchases of uniforms and athletic equipment, guarantees and other related intercollegiate athletic expenses, shall not be included in the operating budget of the institution.