Resources for University Departments
Purpose
The Student Org Payment Request process aims to align with University/System policies and mitigate longstanding financial issues. This shift to a more controlled and monitored financial system allows student organizations to manage their funds better and eliminate the possibility of incorrect and inappropriate transactions leading to deficits and violations of university policy and the IRS code.
Policies to Know
OBFS Policy 2.5 Expend Custodial Funds on Behalf of Owner
“University of Illinois System units serving as liaisons between the system and owners of money held in custodial funds are responsible for expending custodial funds at the request of the fund owner. They accomplish this by submitting transactions to initiate the expenditure and retaining documentation needed to support it.”
OBFS Policy 8.1.5 Determine the Allowability of Specific Financial Support or Sponsorship Payments to Outside Organizations
Financial Support and sponsorship payments may be made to a non-University entity (“Recipient”) to support initiatives that promote or advance one or more of the University of Illinois System’s missions. To make a financial support or sponsorship payment to a Recipient, the Recipient must have a Banner Vendor ID. Financial support or sponsorship payments to Registered Student Organizations (RSOs) that comply with this policy are allowed.
The Student Org Finance Center (SOFC) within the Department of Student Engagement is the only authorized unit on campus to expend and transact the RSO custodial funds.
UAFR Weekly Tips – 3/2/2022
Did you know that Registered Student Organizations (RSOs), which are accounted for within custodial funds, are not legally part of the University of Illinois System?
Therefore, these RSOs, which are accounted for in custodial funds, cannot utilize any of the following:
- U of I System’s Federal Employer Identification Number (FEIN);
- U of I System’s sales tax exemption on purchases;
- U of I System’s tax-exempt status to solicit charitable donations to their organization;
- U of I System’s departmental C-FOPs for making purchases on behalf of their organization;
- U of I System’s credit card terminals for processing credit card receipts on behalf of their organization;
- and
- U of I System’s purchasing power or discounted pricing for their organization’s purchases.
For further details, refer to Section 2. Custodial Funds within the Business and Financial Policies and Procedures.