Finance and Endowment Policy

I. PREAMBLE

Finance at Atlas University is an act of worship. Stewardship of money is stewardship of trust; accuracy, honesty, and prudence are spiritual disciplines. Every dollar managed by Atlas exists to sustain truth, beauty, and the formation of souls.

This manual defines the University’s financial administration, accounting controls, and endowment framework under Florida and federal law.

II. PURPOSE

  1. Maintain transparency and accountability for all institutional finances.

  2. Provide clear structures for budgeting, banking, and disbursement.

  3. Establish future-oriented endowment and investment principles.

  4. Ensure compliance with GAAP, FASB ASC 958 (nonprofits), and Florida statutes.

  5. Demonstrate fiscal integrity to the Board, donors, regulators, and the public.

III. FINANCIAL GOVERNANCE

  • Board of TrusteesFinal fiscal authority; approves budgets, audits, and endowment policy.

  • Finance and Endowment CommitteeSubcommittee of the Board overseeing financial planning, investment, and risk.

  • PresidentChief executive; ensures alignment of fiscal policy with mission.

  • Chief Financial Officer (CFO)Administers accounting, payroll, and reporting; enforces internal controls.

  • ControllerManages daily bookkeeping, reconciliations, and financial data integrity.

  • Internal AuditorConducts compliance reviews; reports directly to the Board Finance Committee.

IV. BANKING AND ACCOUNTS STRUCTURE

To preserve clarity and fiduciary separation, Atlas University maintains three primary bank accounts, all held at a Florida-chartered institution:

  1. Operating Account – receives University’s 50 % tuition share, donations, and auxiliary revenue; funds administrative salaries and expenses.

  2. Faculty Share Account – receives faculty 50 % tuition allocations; disbursed monthly to instructors under contract.

  3. Endowment Account – long-term reserve for gifts, bequests, and surpluses; invested under Board supervision.

Transfers between accounts require two officer signatures (President and CFO). No personal or external commingling permitted.

V. BUDGETING PROCESS

  1. Planning Cycle:

    • Departmental budgets due March 1.

    • CFO consolidates and presents to President April 15.

    • Finance Committee reviews and recommends to Board June 1.

    • Board approves annual budget June 15 for fiscal year July 1 – June 30.

  2. Operating Principles:

    • Budgets must balance revenues and expenses.

    • Tuition projections based on confirmed enrollment.

    • Minimum 5 % of total revenue reserved for contingency.

    • Surpluses transferred to Endowment Account at year-end.

VI. ACCOUNTING STANDARDS AND INTERNAL CONTROLS

  1. Accounting Basis: Accrual accounting per GAAP for nonprofits.

  2. Segregation of Duties: No individual controls both authorization and custody of funds.

  3. Dual Signatures: Required for all disbursements over $5,000.

  4. Monthly Reconciliation: All bank accounts reconciled within 15 days of statement receipt.

  5. Procurement:

    • Competitive quotes required for purchases ≥ $10,000.

    • Conflict-of-interest disclosure mandatory for all vendors.

  6. Audit Trail: Digital record retention minimum 7 years.

VII. TUITION AND REVENUE FLOW

  1. Annual Tuition: $10,000 per student ($2,500 per half-term).

  2. Revenue Division:

    • 50 % → Faculty Share Account.

    • 50 % → University Operating Account.

  3. Administrative Expenses: Paid solely from University’s 50 %.

  4. Disbursement Schedule: Faculty payments issued within 30 days of term end; administrative payroll bi-weekly.

  5. Refunds: Governed by Student Catalog refund schedule; processed through Operating Account.

VIII. FINANCIAL REPORTING AND TRANSPARENCY

  1. Quarterly Reports: CFO provides revenue, expense, and variance statements to President and Board.

  2. Annual Audited Statements:

    • Independent CPA audit each fiscal year.

    • Includes balance sheet, income statement, cash-flow, and notes.

    • Published publicly and filed with the Florida CIE.

  3. Public Disclosure: Summary financials posted to the University website each October.

  4. Internal Audit: Conducted annually by Internal Auditor; corrective actions due within 30 days.

IX. ENDOWMENT FRAMEWORK

1. Establishment

The Endowment will be created when cumulative gifts or surpluses exceed $250,000. Funds deposited into a separate interest-bearing account held in the name of Atlas University Endowment Trust.

2. Purpose

Provide perpetual support for scholarships, faculty development, capital improvements, and mission advancement.

3. Investment Philosophy

  • Conservative, ethically screened portfolios (no industries contrary to biblical ethics).

  • Managed by an independent, SEC-registered advisor under written Investment Policy Statement (IPS).

  • Target asset allocation: 60 % fixed income / 40 % equities.

  • Liquidity reserve = 5 % of corpus.

4. Spending Policy

  • Annual draw limited to 4 % of rolling three-year average market value.

  • Withdrawals require Finance Committee and Board approval.

5. Governance

The Endowment Subcommittee of the Finance Committee monitors performance, risk, and compliance with UPMIFA.

X. DONOR RELATIONS AND GIFT ACCEPTANCE

  1. Gift Acceptance Policy:

    • Only gifts consistent with the mission and moral standards of Atlas University will be accepted.

    • Cash, marketable securities, and approved real property permitted.

    • Gifts creating financial or ethical liability may be declined.

  2. Restricted Gifts:

    • Donor intent honored precisely; funds tracked in separate cost centers.

    • Modifications require donor consent or Board resolution consistent with UPMIFA.

  3. Acknowledgment and Reporting:

    • Written acknowledgment within 10 days of receipt.

    • Annual donor statements provided each January.

  4. Naming Opportunities:

    • Minimum endowment of $1 million for named chairs; $500,000 for named scholarships.

XI. PROCUREMENT AND CONTRACTS

  1. All contracts reviewed by CFO and Legal Counsel.

  2. Multi-year agreements (> 12 months) require Board approval.

  3. Vendors must carry insurance meeting University limits.

  4. Conflict-of-Interest statements renewed annually.

XII. RISK MANAGEMENT AND INSURANCE

Atlas maintains insurance policies covering:

  • General and professional liability.

  • Property and casualty.

  • Workers’ compensation.

  • Directors & officers liability.

  • Cybersecurity and data breach.

Coverage levels reviewed annually by the Finance Committee and Chief Safety Officer.

XIII. FINANCIAL ETHICS AND CONFLICT OF INTEREST

  1. Trustees, officers, and employees must avoid personal gain from University transactions.

  2. Annual Conflict-of-Interest disclosure required; violations may result in termination.

  3. Kickbacks, personal commissions, or unauthorized use of funds strictly prohibited.

XIV. RECORD RETENTION AND INTERNAL AUDIT

  1. All financial records retained ≥ 7 years.

  2. Digital copies stored in encrypted backup under IT supervision.

  3. Internal Audit Reports presented annually to the Board; implementation verified within 60 days.

XV. BUSINESS CONTINUITY AND CONTINGENCY PLANNING

The CFO maintains a Financial Continuity Plan ensuring:

  • Off-site backups of financial systems.

  • Dual signatories for emergency funds.

  • 60-day operating reserve.

XVI. REVIEW AND AMENDMENT

This Manual is reviewed annually by the Finance and Endowment Committee and ratified by the Board of Trustees. Amendments take effect immediately upon adoption.