Financial Bylaw at the American University of Madaba
Bylaw number (3) for the year 2012
Issued in accordance with the provisions of Article 35
Of the Jordanian Universities Law No. 20 of 2009 and its Amendments
Chapter One
Name of the Bylaw and its Terms
Article 1
This bylaw shall be titled (Financial Bylaw at the American University of Madaba for the Year 2012), and it will be in effect upon its endorsement by the Higher Education Council.
Article 2
Unless context indicates otherwise, the following terms and expressions, wherever mentioned in this bylaw, shall have the following designated meanings below:
University : American University of Madaba
Board of Trustees : Board of Trustees of the University
Board : The Board of the Directors Representing the Owner
President : President of the University
President Assistant : President Assistant for Administrative & Executive Affairs
Department : Any administrative, scientific center, or Institute at the University
Director : Director of any administrative department, scientific center or institute at the University
Financial Director : Director of the Financial Department at the University
Financial Employee : An accountant, treasurer, auditor, bookkeeper at the University, & any Employee Assigned to collect, keep, or spend money
Employee : Any person working at the University as a member the teaching faculty and administrative staff
Budget Committee : A Committee Formed to Follow up on the Budget Issues
Expenditure : All Amounts Allocated to Meet the University’s Due Obligations
Advance : amount disbursed in advance to accomplish specific operation or perform designated tasks to fulfil the University obligation due to contracts, agreements or guarantees to cover frequent petty expenses
Article 3
The provisions of this bylaw shall apply to all University financial affairs.
Chapter Two
Duties and Responsibilities
Article 4:
The President is responsible for the University’s funds and shall order their disbursement thereof in accordance with its annual budget and the decisions of its competent councils. He may delegate in writing any of the powers vested on him to any of his deputies, assistants, deans or directors at the University each according to the bounds of one’s position. The President may annul such delegation in writing.
Article 5
The Financial Department at the University shall be the party in charge of all financial transactions at the University. It shall seize University’s funds, collect them, and disburse its financial dues in accordance with University bylaws, regulations, and decisions issued accordingly.
Article 6
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The Financial Director is accountable to the President for all the University accounts, transactions, their records, maintaining University funds, and verifying the application of the provisions of the present bylaw.
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Financial Employees are responsible for performing their financial functions, and organizing financial entries, accounts, and records in accordance with the applicable laws and regulations.
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Each Financial Employee at the University is personally accountable for any material loss to the University caused by his failure, mistake or negligence. In such case, the University shall collect it from him or her in a manner it deems appropriate.
Chapter Three
Budget
Article 7
The President, at the onset of every fiscal year, shall form the Budget Committee headed by the President Assistant and comprised by the membership of the Financial Director, and the Director of the Logistics Department, and two university employees.
Article 8
The University shall have its own independent annual budget.
Article 9
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The University's annual budget consists of its estimated revenues and expenditures for a fiscal year beginning on the first day of January and ending on the last day of December of the same year.
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The budget is organized in chapters, sections, and articles.
Article 10
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The President shall issue the annual budget preparation procedures, its appendices, submission date, and accompanying data by the deans and the directors concerned, and under the supervision of the Financial Director, no later than November of each year so that the Board of Trustees may endorse it one month before the start of the University fiscal year.
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After discussing it with the Board, the President shall present the draft budget to the Board of Trustees for endorsement one month prior to the start of the fiscal year, and then he shall submit it to the Higher Education Council for approval.
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If the annual University budget is not approved before the beginning of the fiscal year, expenditure shall continue in monthly appropriations of which the President shall issue payment orders in the ratio of (1:12) of the budget of the previous fiscal year to cover the recurrent expenses and the rotated financial obligations provided that amounts spent in this manner shall be reimbursed from the new endorsed budget.
Article 11
Subject to Article (12) of this Bylaw, no allocations shall be utilized in the budget or its annexes other than for the purposes specified therein in such budget or annexes.
Article 12
During the fiscal year, additional allocations may be assigned to the budget annex in cases determined by the Board of Trustees, provided that they follow the same procedures and stages when the annual University budget is prepared, organized and endorsed with the exception of the provisions pertaining to submission dates.
Article 13
Allocated funds may be transferred according the following powers:
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From one chapter to another by a decision of the Board of Trustees upon the recommendation of the President.
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From one section to another within the same chapter by a decision of the Board of Trustees upon the recommendation of the President.
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From one article to another within the same section by a decision of the President upon the recommendation of the President Assistant, the dean, or the competent director.
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In all cases of fund transfer as stated in this Article, the Financial Director shall be consulted wherein the transfer does not conflict with the financial obligations incurred by the budget, and to ensure that there is sufficient savings permitting transfer.
Article 14
Savings realized in the budget of any year shall be utilized to finance operational and capital offsets in the budget of the following year, and it shall be entered under (former financial savings).
Article 15
Revenue received for any previous fiscal year shall be credited to the current fiscal year. Expenditures committed in any previous financial year and not paid to the beneficiaries during that year shall be credited to the current year's budget under the entry of (previous commitments).
Article 16
The expenditure shall be spent within the budgeted allocations, based on financial orders issued by the President or his authorized representative in writing.
Chapter 4
Expenditure
Article 17
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The President shall issue the instructions concerning procedures for disbursement, auditing of transactions, division of expenses, the nature of the expenses, clarification of supporting documents for disbursement, and the manner of organizing and preparing the receipt vouchers.
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Disbursement is performed according to financial documents they have been audited and authorized by the signature of the Financial Director as appropriate.
Article 18
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Salaries, allowances and wages shall be paid three days before the end of each month. The President, in cases he deems fit, may pay them beforehand.
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Salaries and allowances of the delegates in scientific missions or training courses abroad shall be paid in accordance with instructions issued by the Board of Trustees for this purpose.
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University contractors and the seconded staff may be paid their deserved full summer vacation salaries, allowances, bonuses, compensation, and vacation allowances on the onset of or within the summer vacation, provided that their contracts or seconded loans end by the end of summer vacation, they have fulfilled their obligations to the university, and they have completed the clearance procedures as required. Furthermore, vacation allowances can be paid to those whose services have ended. The President may deduct part of these allowances to secure any unforeseen obligations on the part of any employee.
Article 19
Value of foreign purchases shall be paid abroad by letters of credits, money transfer, and electronic cards. Transfers may be made in one payment or payments to the account in advance provided that guarantees are taken to ensure the delivery of the purchases within the prescribed specifications and the specified times.
Article 20
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No expense may be disbursed unless the commodities are supplied or the task is carried out and the documents that reinforce disbursement of the expense are submitted, with exception of the following cases:
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The payment scheduled in advance in accordance with any contract or agreement in exchange for an advance payment guarantee.
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Advances scheduled for emergency purposes.
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Training fees, subscription fees for periodicals and magazines, contributions to local, regional and international organizations and associations and refundable insurances.
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Expense shall be paid with a check, bank transfer, electronic card, or letter credits.
Article 21
If it is not possible to consolidate the payments or expenses which exceed one hundred (100) JD in documents or receipts for any reason, the person who made the expenditure must submit a written certificate with his signature showing the amount of this expenditure and that it is paid for the benefit of the university or for related works. Such testimony shall be certified by the President and shall be permitted in exceptional or extraordinary cases and the same person shall not repeat it without justification accepted by the Financial Director.
Article 22
The President shall issue instructions specifying the persons authorized to sign checks, remittances and documentary credits issued by the University, and their powers and the categories of their signatures.
Chapter Five
Revenue
Article 23
The Financial Director shall prepare the forms of major and minor receipts and vouchers with specific financial values as appropriate.
Article 24
Fund shall be credited to the University's account under official receipt vouchers; the payer shall be given a copy thereof. All receipts of such funds shall be recorded in the appropriate chapter or article pertaining to such accounts in the general budget for the current fiscal year. The President shall issue instructions of the procedures for collecting, recording, keeping and depositing such funds.
Article 25
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University funds shall be deposited in a private account in banks approved by the President, and disbursement from this account may be carried out by the signature of the President, or his authorized representative, on the checks and orders directed at the banks. However, it is not permissible to use the university's money after collecting it and before depositing it for any reason.
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The President shall limit the maximum cash amount permitted to be kept in the treasury of the Financial Department.
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Deferred checks are deposited for their maturity in the bank for their collection.
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Notwithstanding the provisions of paragraph (b) of this Article, the Finance Department shall reserve the right to retain any amount of money, if it is not possible to deposit the amount in the approved bank due to the reception of the amount by the university after the end of the banks' normal working hours, provided that the concerned person obtains a written approval from the Financial Manager to retain the amount, and that the amount shall be deposited with the Bank on the following working day.
Article 26
Money credited to the University account shall be returned to the payer in the following cases:
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If approved by the University regulations and the instructions and decisions issued thereunder.
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If the money has been obtained unlawfully or wrongly, it shall be refunded in this case with the approval of the Financial Director and according to the established instructions of the University if it does not exceed (2500 JD) two thousand and five hundred Dinars. If the amount exceeds that, it shall be refunded with the approval of the President upon the recommendation of the Financial Director.
Chapter Six
Advances and Trusts
Article 27
The President shall be authorized to issue a financial advance for any of the following purposes:
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An advance for a scientific mission, training course, health insurance, dissertation printing cost, travel ticket expenses or other expenses determined in accordance with the regulations and decisions in force at the University, provided that the advance payment is repaid from the amounts due to the person who has received the advance.
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A salary advance for newly appointed faculty members at the University during the first two months of their appointment, provided that the advance does not exceed twice their monthly salary, and shall be repaid from their salaries in six installments starting from the month following the date the advance is paid.
Article 28
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The President may, as appropriate, issue a permanent or temporary advance to any of the employees of the University upon the recommendation of the President Assistant, and within the budget allocations, on condition that it is spent for the official purposes, as follows:
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An advance of permanent expenses not exceeding (300 JD) three hundred Dinars, for those whose work requires continuous petty cash expenses. It is repaid under the invoices or approved claims or documents.
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An advance of temporary expenses for purchases or services not exceeding (500 JD) five hundred Dinars and it payable after the end of the purchase or the performance of services under bills, receipts or enhanced documents.
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An advance of permanent expenses to the President Assistant not exceeding 2000 JD two thousand Dinars payable periodically under invoices, approved requests or documents.
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The Dean of Scientific Research may recommend to the President to issue a scientific research grant, from the allocated scientific research fund, to any of the researchers who have obtained financial support for their research in accordance with the regulations and instructions in force at the University, provided that the amount does not exceed (2500 JD) two thousand and five hundred Dinars, and it shall be duly repaid.
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In special cases, the President may approve the disbursement of a temporary advance in excess of the amounts provided for in item (2) of paragraph (A) of this Article.
Article 29
The employee to whom the advance payment has been made shall be liable for the value of the advance from his or her own money. He or she shall prove that the money has been spent for its intended purposes by means of reinforcing documents and receipts, and provide proof of its cash balance. The Financial Director or his authorized representative shall monitor the movement of this advance and verify that it has been used for its intended purposes.
Article 30
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Taking into account what is otherwise stated in this bylaw, the advance payment shall be made before the end of the fiscal year. In case of non-payment, it shall be deducted from the salary of the beneficiary in one lump sum. If this is not enough, the advance shall be paid from the salary of the next month.
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If the beneficiary of the advance is outside Jordan upon the due date of its settlement, it shall be directly paid upon his return.
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A temporary advance shall be paid immediately after the end of the purpose for which it was disbursed. In all cases, the retention period of the advance shall not exceed one month from the date of its disbursement.
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Upon termination of the service of the employee to whom the advance payment has been made, the advance or its balance shall be recovered at once.
Article 31
Any amount paid to the University not stated in its budget or received for the benefit of any other party, shall be credited to a trust account. Details of this amount shall be recorded in the Register of Trusts. This amount shall be subject to the provisions of the present bylaw in the manner of its reception, entry and the validity of its disbursement. As for other trusts that are received by the University under special conditions, they shall be subject, in terms of their return or disbursement, to those conditions, whether they were returned by themselves, or in a manner that fulfills the interests of the University.
Article 32
Any trust that is not claimed after five years from the date of its receipt shall be credited to the university account, provided that the owner of the trust is notified to retrieve it, an announcement is placed in a prominent place at the university, or by any other means determined by the president before the end of that period.
Chapter Seven
Account, Records, Forms & Cards
Article 33
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With the approval of the President Assistant, the Financial Director shall determine types and forms of records, forms and cards that must be maintained, used and organized to verify and control financial affairs of the University in accordance with the established accounting principles.
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University accounts shall be organized and the basis their bookkeeping determined according to an accounting plan consistent with the classification and numbering of the budget.
Article 34
Used bonds, forms, financial records shall be kept at the university for a period no less than seven years following the end of their use. They may be disposed of thereafter in accordance with the instruction issued by the President. Furthermore, he may consent to deliver any of these records and documents to the competent authorities for documentation.
Chapter Eight
Internal & External Audit and Reports
Article 35
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The Department of Internal Audit and Control shall be established in the university, and it shall directly be accountable before the President. It shall supervise the implementation of the items of University budget ranging from revenues, expenses, contracts and obligations, and ensure the proper functioning of the procedures in accordance with the applicable bylaws and. It shall also ensure that financial operations are consistent with international accounting standards, and submit quarterly reports, as well as an annual report to the President.
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The University shall maintain the accounts and financial transactions regulating it operation in accordance with the accepted accounting principles. The accounts and final reports extracted from them are subject to auditing by a legal accountant appointed by the Board for such purpose.
Article 36
The Director of the Internal Audit and Control Department shall discuss any possible violation with the concerned director prior to confirming it as a violation and including it in the reports of the department.
Chapter Nine
General Provisions
Article 37
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The Financial Director shall submit to the president a financial report every three months showing the financial conditions of the University with respect to revenues and expenditures.
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The President shall submit to the Council of the Board of Trustees the final financial report and the closing account no later than three months after the end of the fiscal year.
Article 38
The President shall determine, in accordance with instructions issued by him upon recommendation by the President Assistant, the positions for which the occupants are required to provide financial guarantees. The instructions shall specify the amounts and conditions of such guarantees.
Article 39
The Director of Finance and the Director of Internal Audit and control shall be provided with a copy of each contract or agreement, which imposes rights, duties or financial dues on the university for relying upon them in the implementation of that contract.
Article 40
A doubtful debt shall be written off at the end of the fiscal year in accordance with the following powers:
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By a decision of the President, if the amount does not exceed (1000 JD) thousand Dinars.
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By a decision of the Board of Trustees and with the approval of the Board, if the amount exceeds (1000 JD) thousand Dinars and does not exceed (5000) five thousand Dinars.
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By a decision of the Board, if the amount exceeds (5000 JD) thousand Dinars.
Article 41
Any financial employee who has in his possession securities or documents with financial values belonging to the University shall secure them in the accredited bank or in a special safe at the university.
Article 42
In case of a shortage or a financial deviation or misappropriation of university funds or falsification of records and books, the employee in charge of such funds, records, books and bonds shall inform the financial manager who shall in turn inform the president so that he can carry out the appropriate measures.
Article 43
The President may approve disbursement of the following appropriations and issue the regulations that control their disbursement:
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Scientific trips for students.
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Hospitality expenses, concerts and events.
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Scholarships and awards for outstanding students.
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Conferences held within the university.
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Attendance of conferences, travel allowances and daily-paid jobs.
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Compensation for employees the nature of whose work requires disbursement.
Article 44
The Board of Trustees shall issue executive regulations required to apply this bylaw.
Article 44
The Board of Trustees shall take decisions concerning cases not stated in this bylaw.