AR 6310: Accounting

Authoritative Requirements
The accounting system, including the uniform structure used to record the college's financial affairs, shall be in accordance with Oregon local budget law and the Oregon Community College Accounting Manual.

In addition to the above regulation, federal guidelines, and other applicable statutes and regulations, the college is required to present financial statements in accordance with generally accepted accounting principles (GAAP) for a special-purpose government engaged only in business-type activities. GAAP provides uniform minimum standards and guidelines for financial accounting and reporting. They are the framework within which financial transactions are recorded and reported resulting in financial statements that provide comparability between governmental entities, consistency between accounting periods, and reliability for internal and external users of the statements.

Accounting System (software)
An accounting system shall be maintained which will provide necessary information for sufficient administration of the college’s financial information needs. The system shall be designed to give assurance to members of the Board of Education, students, faculty, staff, and citizens of the district of proper administration and stewardship of college funds. The vice president of finance and administration or designee shall establish procedures to ensure the college’s fiscal management is in accordance with the principles contained in federal and state regulations.

The college will utilize fund accounting as a control device to separate financial resources and ensure funds are expended in relation to their specified purpose. As required by Oregon local budget law, expenditures shall be recognized in the accounting period in which the liability is incurred and shall be limited to the amount budgeted by appropriation and to the total amount of the budget for each fund.

Reporting
The accounting structure supports financial reporting and accreditation requirements. The college shall prepare and submit a budget on actual financial reports to the Board of Education at least quarterly and an Annual Comprehensive Financial Report to the Board of Education on an annual basis. In addition, the accounting structure supports the financial resources standard of accreditation.

NOTE: See also AR 6400 related to annual audit requirement in Oregon law.

• Community College Accounting Manual
• NWCCU 2020 Standard 2.E.1, 2.E.2, 2.E.3
• ORS 341.709 (Annual Audit)