III.A. Appropriations and Revenue Sources

III.A.1. Fiscal Philosophy

III.A.1.01 - General Fiscal Philosophy

The Texas Higher Education Coordinating Board (“Coordinating Board”) is the state agency responsible for the approval and funding of college transfer courses offered in the community colleges of Texas.

The System is further supported by local district taxes, tuition, fees, investment and interest income, contributions, grants, and revenue from auxiliary activities.

The budget and fiscal operations of the System shall be conducted within the requirements of the Appropriations Act, other federal and state laws, the policies, rules and regulations of the Board of Trustees, and the administrative guidance of the Chancellor.

LSCS Policy Manual Section adopted by the Board of Trustees on June 3, 2010

III.A.2. Resource Development

III.A.2.01 - Role and Purpose

The purpose of the Office of Resource Development and Administration is to facilitate, coordinate, and assist System campuses to seek and secure external funds from federal, state, and local agencies.

III.A.2.02 - Authorization: External Funding

Applications and requests for funding from external sources will be made under the following provisions:

  1. Will provide support for educational program needs that cannot be met through operational funds;
  2. Will be in accordance with the System and Colleges’ mission, vision, goals and priorities; and
  3. Will be submitted with the approval of the College President or appropriate Vice Chancellor.

III.A.2.03 - Grant Application

All grant proposals submitted shall be in compliance with System policies and procedures, based on identified needs of the colleges, and in alignment and support of the System’s institutional goals and strategic plan.

All System-wide and federal applications will designate the Office of Resource Development and Administration with its address as the point of contact for grant documents, negotiations, and correspondence, and a College contact for project operations.

Non-governmental applications made by an individual College will designate a College contact for project operations and negotiations on all grant documents and correspondence.

III.A.2.04 - Authorized Signatures

Upon review and approval of the General Counsel, the Chancellor, or in his/her absence, the Vice Chancellor for Administration and Finance/Chief Financial Officer ("CFO") shall sign all grant applications, supporting documentation and contracts on behalf of the Board of Trustees.

LSCS Policy Manual Section adopted by the Board of Trustees on June 3, 2010

III.A.3. Gifts

III.A.3.01 - Gifts from Private Sources

The Lone Star College Foundation (the "Foundation") exclusively supports the philanthropic income and investments of the System. The Foundation serves as a Texas nonprofit corporation and it exempt from federal income tax under section 501(a) of the Internal Revenue Code as an organization described in section 501(c)(3).

The Foundation is a fiscal and organizational independent entity from the System and receives governance through its own Board of Directors. The Foundation Board is made up of business, corporate and community leaders, who reside and/or conduct professional endeavors within the boundaries of the System.

The criteria for philanthropic gifts must be vested in the LSCS Foundation and requires that the donor:

  1. Constitutes a public or private funding source,
  2. Provides the intent to make a charitable contribution,
  3. Invests the gift irrevocably, and
  4. Does not receive any goods or services in exchange for the gift.

III.A.3.02 - Gifts from Private Sources

All bequests of property for the benefit of the System shall be accepted by the Lone Star College Foundation (the "Foundation") on behalf of the System. When not specified by the grantor, funds or other property donated, or the income from such funds for property, may be expended in any manner authorized by statute.

The Chancellor, or designee, shall make quarterly reports to the Board of the acceptance of gifts and donations including donor, value, form, and restrictions.

The authority to accept gifts on behalf of the System shall be vested solely with the Foundation.

The Fondation shall not accept gifts that discriminate against any person on the basis of gender, race, color, religion, national origin, or disability.

Monetary donations received from private sources will be processed through the Foundation and follow the Foundation policies and procedures.

LSCS Policy Manual Section adopted by the Board of Trustees on March 3, 2011

III.A.4. Indirect Costs

III.A.4.01 - Definition

Indirect costs represent the expenses of doing business that are not readily identified with a particular grant, contract, project function or activity, but are necessary for the general obligation of the organization and the conduct of activities it performs.  Examples of indirect costs are:

  1. Maintenance of shared facilities;
  2. Depreciation of shared buildings and equipment;
  3. Campus-wide or system-wide accounting services;
  4. Human Resources;
  5. Financial and accounting services;
  6. Campus-wide or system-wide library and computing services; and
  7. Utilities of shared facilities

III.A.4.02 - Indirect Cost Rate

The System shall renew and maintain a federal indirect cost rate.

III.A.4.03 - Charging Indirect Costs on Grants and Contracts

LSCS Personnel are encouraged to seek the maximum allowed indirect costs for all grants and contracts.

LSCS Policy Manual Section adopted by the Board of Trustees on June 3, 2010

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