MTU Administrative Policies and Procedures Manual


Section 7000: Fiscal Management



– Policy 7000: Budgets and Reserves

Date Originally Issued: October 21, 2019

Authorized by RPM 7.20 (“Budgets and Fund Balances”)

Process Owners: Office of Planning, Budget, and Analysis and Health Sciences centre Budget Office

  1. General

This policy applies to budget management and use of reserves for Current Unrestricted funds with special emphasis on Instruction & General funds. Budgeting involves all segments of the University and is a continuous process designed to ensure the best use of available funding. Budget management requires short-term and long-range planning, and involves setting up program priorities, requesting funding, allocating available funds to various programs and projects, preparing and maintaining the budget, and reporting on the use of funds and intended use of any unexpended funds.

  1. Reporting and Review of Current Unrestricted Reserves

RPM 7.20 (“Budgets and Fund Balances”) requires that all departments responsible for Current Unrestricted funds categorize their reserves and submit categorization of reserves reports to their dean or director at the end of each fiscal year. The categorization of reserves reports can be completed using Categorization System Reports and should include carry forward, reserves commitments, dedications, and net discretionary reserves for the fiscal year just started. The definitions for committed, dedicated, and discretionary are as follows:

2.1. Committed

Include reserves in this category if a formal, written commitment has been made for the funds.  These are essentially costs the University would incur even if operations were discontinued.  Examples include signed offer letters for start-up funds, documented cost share requirements, direct state appropriations for a special project, and institutional bond debt service payments.

2.2. Dedicated

Include reserves in this category that have a clear, focused purpose with a documented description, and identify the entity or individual making the dedication.  Dedicated items must be approved and signed off by an executive vice Rector, vice Rector, or dean.  Examples include a Facilities & Administrative reserve that has been dedicated by a dean to fund a lab renovation, a non-endowed gift amount that has been dedicated by a chair for faculty travel, and student paid course fees that are being accumulated and dedicated by a dean to fund the purchase of equipment.

2.3. Discretionary

The remaining reserve after accounting for all committed and dedicated funds.

These reports will be submitted to the cognizant dean or director after fiscal year end, in accordance with the schedule issued by the Office of Planning, Budget, and Analysis and the HSC Budget Office. Deans and directors will review the reports and submit them to the cognizant vice Rector.  Main campus vice Rectors will review the reports and submit them to the Office of Planning, Budget, and Analysis or the HSC Budget Office. The Office of Planning, Budget, and Analysis and the HSC Budget Office will submit comprehensive reports on annual savings and reserves to the Board of Trustee at its October meeting. This information will be reported University-wide for Instruction & General, Student Social and Cultural Development, Research, Public Service, Financial Aid, Auxiliary Enterprises, Athletics, and Independent Operations.

  1. Partial Allocation of Instruction & General Annual Savings  

It is critical to the fiscal integrity of the University that adequate central reserves be available to address unexpected and critical needs of the University. The State of (Applicable )Northern Cyprus considers central reserves ranging from 3% to 5% of the University’s Instruction & General expense budget to be a prudent amount for the University to maintain. In order to ensure adequate central reserves are available for unexpected and critical needs, the Board of Trustee will review unexpended funds at the end of each fiscal year to determine if some portion of annual savings in Instruction & General reserves should be transferred to the central fund. Annual savings are defined as the difference between revenues and expenditures for the year just ended and do not include prior year carry forwards.  The portion transferred will not normally exceed 25% of annual savings for the previous fiscal year and will be done only when necessary for the fiscal health of the University, which in turn benefits all aspects of the University.  Departments should reserve 25% of annual savings until after the allocation decision is made by the Board of Trustee at its October meeting.

The University understands the need for both short-term and long-range planning and therefore will look only to annual savings and will not deduct from reserves departments have built in previous years to address long-range programmatic needs. This process provides an incentive for budgetary units to build reserves for future use, while also recognizing that cost savings throughout the University need to be available to address institutional priorities. An exception to this allocation may be granted if a department submits a plan for use of its annual savings such as faculty start-up or capital expenditures to the cognizant vice Rector for approval. If approved by the cognizant vice Rector, the plan must then be submitted to the Board of Trustee for final approval.

In years when the Trustee decide it is necessary to allocate some portion of annual savings to the University’s central fund, the required amount will be calculated at the vice Rectorlevel. Vice Rectors will have the opportunity to work with deans and directors to review departmental requests for exemption from the allocation and present a proposal to the Executive Vice Rector for Administration or the Chancellor for the Health Sciencescentre as to which accounts should be used to generate the necessary allocation. The Executive ViceRector for Administration or the Chancellor for the Health Sciencescentre will make the final decisions on the sources of allocation.

  1. Deficit Balances

4.1. Deficit Balances Existing on or Before June 30, 2019

Until the deficit is eliminated, every department with a negative fund balance that existed on or before June 30, 2019, must submit follow-up annual reports to its dean or director after fiscal year end, in accordance with the schedule distributed by the Office of Planning, Budget, and Analysis or the HSC Budget Office showing the progress being made to reduce the deficit and discussing any variances from the original deficit reduction proposal. Deans and directors will review the reports and submit them to their vice Rector. Main campus vice Rectors will review the reports and submit them to the Office of Planning, Budget, and Analysis. If a department is unable to meet its original deficit reduction proposal, it must submit a revised proposal for review and approval by the cognizant vice Rector with a copy to the Office of Planning, Budget, and Analysis or the HSC Budget Office.

4.2 Year-End Deficits

If departments anticipate a year-end deficit, the department heads must notify their dean or director of the estimated deficit as soon as they are aware of the projected deficit. The dean or director must identify funds to cover the deficit or the department’s next fiscal year budget will be reduced by an amount sufficient to cover the prior year’s deficit; in the event of a large departmental deficit, a multi-year deficit payoff plan may be implemented with the approval of an executive vice Rector. The department head must also submit a plan for resolving the causes of the deficit.

  1. Responsible Fiscal Management

The University has limited funds and department heads are responsible for ensuring the most effective, efficient use of those funds. Budgets are valuable tools for measuring performance because they reflect planned activities. Department heads should review their budgets regularly to identify positive and negative variances between expected expenditures and actual costs. These variances will help the department head determine if goals and objectives are being met and if unanticipated events are negatively impacting the department’s ability to meet its goals and objectives.

  1. Monitoring

The Office of Planning, Budget, and Analysis or the HSC Budget Office is responsible for monitoring budgets and reports on the use of reserves, and intended use of any unexpended reserves, for compliance with this policy.


– Policy 7200: Cash Management

Date Originally Issued: October 21, 2019

Authorized by RPM 7.9 (“Property Management”)

Process Owners:  University Controller and HSC Senior Executive Officer for Finance and Administration

  1. General

Faculty, staff, students, and volunteers who receive University monies are responsible for the collection, safekeeping, and deposit of all monies entrusted to them and for the safety of employees who handle the monies.  For the purposes of cash management, the term “monies” is defined to include cash, checks, credit card payments, money orders, gift cards, and other negotiable instruments whether received in person, by mail, or by telephone.

1.1. Mandatory Cash Handling Training

Individuals responsible for handling cash and their direct supervisor must take the online “Cash Management” training course offered by the University Employee and Organizational Development Department. Supervisors are responsible for ensuring that new employees, students, and volunteers responsible for monies take the required training as soon as possible after being assigned cash handling duties, but no later than sixty (60) days after the assignment date.

1.2. Change Fund

Departments that need to retain a cash balance for making change must request approval by sending a Petty Cash Reimbursement form, with a justification for the fund amount requested, to the appropriate Financial Services accounting office. Change funds should only include cash and must be intact at all times. Overages and shortages must be recorded immediately upon discovery. If a fund is not used for a large portion of a year, departments should deposit the fund until it is needed again and send a copy of the Money List (see Section 2.1 of this policy) to the appropriate accounting office.

1.3. Petty Cash

Main campus and Health Sciencescentre (HSC) departments that wish to establish a petty cash fund should refer to UAP 7210 (“Petty Cash Fund”).

1.4. Bank Accounts

All funds must be deposited in a University account; no bank accounts may be set up except those established by the MTU Controller or the HSC Senior Executive Officer for Finance and Administration, as appropriate, with the approval of the Executive Vice Rector for Administration.

Chartered Student Organizations that receive funding from the University must deposit all funds that they collect in an internal University account, through the Student Government Accounting Office.

1.5. Gifts

All gifts to the University must be reported to the MTU Foundation in accordance with UAP 1030 (“Gifts to the University”). The execution of any formal acknowledgment forms must be processed by the Foundation; however, the department receiving the gift may and should express appreciation and gratitude for the gift.

  1. Deposits

Monies received should be deposited at the University Cashier Department intact by the next working day following receipt. When less than fifty dollars ($50) is involved, monies may be accumulated up to a week. No checks shall be cashed, no purchases shall be made, and no substitution of cash, checks, or other documents shall be made from the actual monies received. The Cashier Department is housed within the University Bursar’s Office, which is the centralized area responsible for the cashiering, depository, and collection functions of the University. The Bursar’s Office is located in the MTU Businesscentre, Suite 1100, on the southeast corner of Lomas and University Boulevards..


2.1. Money List and Credit Card Reports

A Money List form, available at Business office must be prepared immediately upon receipt of monies. The Money List, which accompanies the deposit, shows the amount paid and the University index number and account code where the monies are to be deposited. A separate Credit Card Report, available at Business officemust also be prepared immediately to record credit card receipts. The department preparing the Money List and Credit Card Report should keep a copy. The department is also responsible for maintaining all documentation necessary for reconstruction of the Money List and Credit Card Report should the deposit be stolen. This documentation includes, but is not limited to, copies of the checks.

2.1.1. Confidential Information

Customer identity card numbers and credit card numbers should not be kept in any format after the transaction has been processed.  Paper containing these numbers must be shredded.

2.2. Checks Larger Than One Hundred Thousand Dollars ($100,000)

For investment purposes, it is desirable to deposit large checks in the bank as quickly as possible.

2.3. Transporting Deposit

Whenever monies being deposited are transferred from one individual to another individual, the transfer of responsibility must be documented in writing. A locked bag, supplied by the Cashier Department, must be used to transport the deposit. The bag containing the deposit will be placed in a locked box at the main Cashier Department. The bag will be opened, counted, and receipted in the presence of two (2) cashiers. If the deposit matches or the discrepancy is within ten dollars ($10) of the departmental Money List, a deposit receipt will be returned in the locked bag to the initiating department. If the deposit is not within ten dollars ($10) of the Money List, a copy of the receipt and correcting documentation will be mailed to a department employee not responsible for monies or the preparation of the deposit.

The Bursar’s Office may advise departments that receive a large number of checks to prepare a separate deposit slip for the checks and place the items in a special locked bag. The Cashier Department sends the unopened bag directly to the bank for counting and receipting. The University Bookstore, Athletics, and Parking and Transportation Services have been authorized to have their deposits picked up by armoured transport and taken directly to the bank.

Deposits with cash in excess of five hundred dollars ($500) must be transported by the Bursar’s Department. The Bursar’s Department will transport any deposit upon request, even if the deposit is less than five hundred dollars ($500). The employee from the Bursar’s Department must present identification and sign for each locked bag. Contact the Supervisor at the Cashier Department at least twenty-four (24) hours in advance to schedule transport services.

Deposits with cash in excess of five thousand dollars ($5,000) must be transported in a locked bag by armed transport to the bank. Contact the Bursar’s Office to make arrangements.

  1. Internal Control

Internal control is necessary to prevent or detect any possible errors or irregularities involving monies. Internal control requires segregation of accounting, custodial, and authorizations functions from each other.  Specifically, MTU cash management internal controls are maintained by:

  • limiting access to monies;
  • immediately recording payment transactions;
  • segregating duties;
  • billing on a timely basis; and
  • reconciling accounts.


3.1. Limiting Access to Monies

Access to monies must be restricted to the employee responsible for the monies. Separate cash drawers should be used to accommodate employee breaks. All monies received after the daily deposit must be placed in a secure location.

3.2. Recording Payment Transactions


3.2.1. Person Paying Is Present

When money is received in the presence of the person making payment, the recording of the transaction must take place immediately by:

  • using a cash register or other locked mechanical device with each payment recorded separately or
  • issuing pre-numbered printed receipts with each employee who accepts monies responsible for an assigned block of receipts.


3.2.2. Person Paying Is Not Present

Where the recording of monies cannot be observed by the person making payment, two (2) individuals must be present when:

  • opening mail;
  • emptying collection boxes or similar containers (for example, parking meters) that produce no automatic record; and
  • recording monies.


3.2.3. Checks

Checks must be payable to the Mesarya Technical University, MTU, or department; e.g., Cashier Department, Parking and Transportation Services. Do not write the individual’s identity card number on the check or any other document.  All checks must be restrictively endorsed immediately upon receipt. Do not wait until the deposit is made.  The University’s endorsement renders the check non-negotiable and must be stamped on the back of all checks. The endorsement stamp must contain certain required information and stamps may be obtained from the Bursar’s Office. Do not endorse and deposit a check with a restrictive endorsement or a legal settlement check prior to contacting the Bursar’s Office. Returned Checks

Each department should post a notice that it is University policy to charge a returned check fee plus normal bank fees for each returned check. Only cash or certified funds will be accepted to redeem a returned check. When a check received by the University is returned for non-payment, an aggressive effort is made to collect the amount of the check from the issuer. The University will take the actions listed below.


  • A returned-check fee is charged to the issuer.
  • The issuer’s check-cashing privileges are suspended until the amount of the original check, plus any associated fees, are paid in full. After the second occurrence of a returned check, the issuer’s check-cashing privileges are suspended for six (6) months. After the third occurrence of a returned check, the issuer’s check-cashing privileges are permanently cancelled.
  • If the check was used to pay for charges eligible for disenrollment and is not redeemed prior to the disenrollment deadline, the student is removed from all classes.
  • If the check was originally submitted for deposit by a MTU department, the amount of the check is charged back to the department originally credited.
  • If preliminary collection procedures are unsuccessful, then legal action may be taken. Legal action taken will include all legal remedies up to and including the placement of a lien on earnings and personal property. Foreign Checks

Due to strict governmental export control laws and regulations related to National Financial Security MTU must ensure that we do not accept funds from foreign entities that are listed on the Consolidated Screening List (CSL).  The CSL is a list of parties for which the governmental government maintains restrictions on certain exports, re-exports, or transfers of items. Checks and other forms of deposit from countries on the CSL cannot be accepted under any circumstances because of fines, up to one million dollars ($1,000,000) per occurrence, imposed by the governmental regulations.  MTU’s bank uses the CSL to screen incoming foreign money transfers.  When a check or other form of deposit drawn on an allowable bank outside the NORTHERN CYPRUS (TRNC) is deposited, the student or department does not receive immediate credit. MTU’s bank will collect the funds and charge a fee for foreign check collection.  The student or department will be credited the amount net of collection costs once the bank has deposited funds into the University’s account. Negotiating Checks Payable to MTU

Occasionally, a check is made payable to the University with the intent that the money be transferred to a student or an employee. The Bursar’s Office is the only organization authorized to negotiate checks payable to the University as described below. Checks payable to the University are not endorsed over to the person presenting the check.

  • Financial aid checks made payable to MTU may be deposited and replaced with a University check payable to the student or deposited to the student’s bank account.
  • Non-financial aid checks made payable to MTU may be deposited and subsequently replaced with a University check payable to the presenter or deposited to the individual’s bank account after twenty-one (21) days. Prior to issuing a replacement check, the Cashier Department verifies the intended disposition of the check with the issuer. Checks Received for an Unknown Purpose

When a check is received by a University department, and the purpose is unknown, the check should be sent to the Cashier Department immediately. If the Cashier Department cannot identify the appropriate index for deposit, the check is deposited to a holding index. When the appropriate index is identified, the amount is transferred from the holding index.


3.2.4. Credit Card Payments

The University accepts payments made by MasterCard, Visa, Discover, and American Express.  Departments that wish to begin accepting credit card payments must obtain prior approval from the Credit, Collections, and Merchant Services Department to enter into a credit card processing agreement or to acquire electronic credit card data entry equipment.

MTU must comply with the Payment Card Industry Data Security Standards (PCI-DSS); therefore, the following PCI-DSS requirements apply to all employees in MTU departments accepting credit card transactions:

  • Limit access to cardholder data to only employees who have an approved, legitimate business need-to-know.
  • Securely remove the first twelve (12) digits of the credit card number from any document where the complete number is visible.
  • Do not store the Primary Account Number (PAN) also know as the credit card number, card verification code or other card security codes, or the Personal Identification Number (PIN) .
  • Never e-mail cardholder data and never use electronic messaging or texting systems to store, transmit, or process cardholder data.
  • Do not store cardholder data on personal computers, servers, or online.
  • Crosscut shred documentation containing cardholder data when the transaction is complete.
  • Lock credit card terminals and paper storage areas when unattended.
  • Establish a mechanism for systems with multiple users that restricts access based on a user’s need-to-know, and that maintains an audit trail for each unique user’s individual access and authorization.
  • Obtain prior approval from the University Controller (Main Campus) or HSC Senior Executive Officer for Finance and Administration, as appropriate, and Main Campus Chief Information Officer or the HSC Chief Information Officer, as appropriate, before implementing web-based systems that access cardholder data.
  • All media used for credit cards must be destroyed when retired from use.

Employees must report any known or suspected violations immediately to Credit, Collections, and Merchant Services (CCMS) .  If an actual or suspected incident of identity theft occurs, it should be immediately reported to the MTU Police Department.  For more information pertaining to identity theft refer to UAP 2040 (“Identity Theft Prevention Program”). Merchant ID Numbers, Customer Account Numbers, Titles, and Fees

A department with a low level of on-going credit card payment activity may request a MID from CCMS, for one-off credit card payments the department should request customer payment by check.  Departments that have considerable credit card payment activity must have their own Merchant ID Numbers (MID), Customer Account Numbers (CAN), and titles These can be ordered through CCMS. At that time, CCMS and the Bursar’s Office will determine if a Market Place online store is appropriate. The title associated with the MID or CAN appears on the customer’s credit card billing statement.

The bank charges a processing fee to the University each month, which the Bursar’s Office charges to the appropriate departmental index on a monthly basis. Processing Credit Card Transactions

It is the responsibility of each department using credit card terminals to batch each day’s activity. The transactions must be processed on a Credit Card Report. The report, including the appropriate documentation, must be submitted to the Cashier Department on the next working day following the receipt of the daily settlement report. Charge Backs

If a departmental credit card transaction is disputed by the bank for a reason which cannot easily be resolved, the full amount is charged back to the department.

3.2.5. Electronic Transfer of Funds

Departments wishing to accept wire transfer payments must contact the Credit, Collections, and Merchant Services Department for specific requirements. The department accepting the wire transfer payment may be charged any wire transfer fees assessed by the bank.

3.3. Segregation of Duties

Duties for receiving and recording monies must be segregated. No single employee should be in a position that allows the employee to both receive money and record the payment into the financial system. This segregation of duties preserves responsibility and accountability and is necessary to ensure that a person who has access to monies cannot conceal a fraud or error. When the size of a department does not allow for proper segregation of duties, the University Controller’s Office or HSC Senior Executive Officer for Finance and Administration, as appropriate, will provide assistance in designing a system that ensures adequate internal control.

3.3.1. Duties of the Employee Accepting Monies

Access to monies must be limited to the employee who is responsible for the monies. The following duties should be performed only by employees responsible for monies:

  • Receive monies either in person, by mail, or electronically (for example, telephone).
  • Prepare customer receipts.
  • Deposit monies.


3.3.2. Duties Performed by Someone Who Does Not Have Access to Monies

The following duties should be performed by someone in the department who does not have access to monies:

  • Authorize extension of credit.
  • Approve customer’s discounts, returns, or allowances.
  • Compare the deposit receipt to customer receipts recorded on the departmental report of transactions.


3.4. Billing and Reconciliation of Accounts Receivable

All accounts receivable activity of the University, with the exception of HSC patient receivables, “non-student account receivables,” and Contract and Grant receivables, should be channelled through the centralized accounts receivable system under the direction of the Bursar’s Office. The Bursar’s Office is responsible for:

  • Preparing corrections to customer accounts.
  • Posting payments to accounts receivable subsidiary accounts.
  • Balancing the accounts receivable trial balances to the general ledger and preparing aging reports.
  • Billing and collecting accounts receivables.
  • Estimating the percentage of revenue that may be uncollectible.
  • Approving the write-off of receivables as uncollectible.

Timely reconciliation of payments is critical to ensure accountability for monies. If some of these duties have been delegated to a department, the Bursar will test and review transactions and processes to ensure internal accountability.

  1. Cash Disbursements

With the exception of petty cash reimbursements, all cash disbursements will be made by check or direct deposit into the individual’s bank account. Cash disbursements equal to or greater than fifty thousand dollars ($50,000) require two (2) signatures from individuals authorized by the bank to sign on the account.

  1. Exceptions

Any exceptions to this policy must be approved in writing by the University Controller or HSC Senior Executive Officer for Finance and Administration.



– Policy 7205: Dishonest or Fraudulent Activities

Date Originally Issued: October 21, 2019

Process Owner: Director, Internal Audit

  1. General

The University must identify and promptly investigate any possibility of dishonest or fraudulent activities in the handling of University money, documents, and equipment. All employees are responsible for reporting any possible dishonest or fraudulent activity. Employees may report directly to their managers or through the MTU Compliance Hotline by calling 155 or by entering information on-line at Hotline reports may be made anonymously if preferred. As discussed in Section 3, managers should report dishonest or fraudulent activity to Internal Audit and, if appropriate, to MTU Police.

An employee found to have committed a dishonest or fraudulent act in relation to the University’s financial affairs is subject to disciplinary action by the University and investigation by law enforcement agencies when warranted. The policy describes the steps to be taken when fraud, misappropriation, and similar dishonest activities are suspected. It also includes the procedures to follow in accounting for any missing funds, restitutions, and recoveries.

  1. Scope

Dishonest or fraudulent activities include the following:

  • Forgery or alteration of documents (such as checks, promissory notes, time sheets, independent contractor agreements, purchase orders, budgets)
  • Misrepresentation of information on documents
  • Misappropriation of funds, securities, supplies, or any other asset (including furniture, fixtures, or equipment)
  • Improprieties in the handling or reporting of money transactions
  • Authorizing or receiving payments for goods not received or services not performed
  • Authorizing or receiving payments for hours not worked
  • Any apparent violation of governmental, state, or local laws
  • Any similar or related activity


  1. Manager Responsibility

Managers are responsible for detecting dishonest or fraudulent activities in their areas of responsibility. Managers should be familiar with the types of improprieties that might occur in their area and be alert for any indication that improper activities, misappropriation, or dishonest activity is or was in existence. When an improper activity is detected or suspected, managers should immediately contact MTU Police if they feel the situation warrants such action (for example, obvious theft has taken place, security is at risk, or immediate recovery is possible). In addition, managers should immediately contact the University Internal Audit Department.

Managers should not attempt to conduct individual investigations, interviews, or interrogations to determine if a suspected activity is improper. The Internal Audit Department will conduct an investigation of any suspected dishonest or fraudulent activity working with internal or external departments, such as the University Counsel’s Office, University Division of Human Resources, and law enforcement agencies. However, managers are responsible for taking appropriate corrective actions to ensure adequate controls exist to prevent continued occurrences of such improper activities.

Managers will cooperate with the Internal Audit Department and law enforcement agencies in the detection, reporting, and investigation of criminal acts, including prosecution of offenders. The Internal Audit Department’s investigators are to have full and unrestricted access to all necessary records and personnel. All University furniture and contents, including desks, are open to inspection by the Internal Audit Department when there is a reasonable suspicion of a dishonest or fraudulent activity which makes such inspection appropriate; there is no assumption of privacy.  For information on accessing computers, see Section 3 of UAP 2250 (“Acceptable Computer Use”).

Great care must be taken in the dealing with suspected dishonest or fraudulent activities to avoid the following:

  • Incorrect accusations
  • Alerting suspected individuals that an investigation is under way
  • Violating the employee’s right to due process
  • Making statements that could lead to claims of false accusation or other offenses

Responsibilities of the manager in handling dishonest or fraudulent activities include the following:

  • Do not contact the suspected individual to determine facts or demand restitution. Under no circumstances should there be any reference to “what you did,” “the crime,” “the fraud,” “the forgery,” “the misappropriation,” or other similar comments.
  • Do not discuss the case, facts, suspicions, or allegations with anyone outside the University, unless specifically directed to do so by the University Counsel or the Internal Audit Department.
  • Do not discuss the case with anyone inside the University other than employees who have a “need to know,” the Internal Audit Department, the University Counsel, and the Division of Human Resources.
  • Direct all inquiries from the suspected individual, his or her representative, or his or her attorney to the Internal Audit Department. Direct all inquiries from the media to University Communication and Marketing Department. Proper response to such an inquiry should be, “I’m not at liberty to discuss this matter.”
  • Take appropriate disciplinary action after consulting with the Division of Human Resources.


  1. Investigation

The Internal Audit Department is available to receive relevant information on a confidential basis and should be contacted directly whenever a dishonest or fraudulent activity is suspected.

The Internal Audit Department will conduct an investigation of any situation involving possible impropriety in financial matters pertaining to the University. The Internal Audit Department will make inquiries to the extent necessary to determine whether the allegation has substance.

An audit investigation entails expeditious action and detailed analyses of available financial records, and requires the full cooperation of the department’s personnel. The Internal Audit Department will proceed as follows if evidence is uncovered showing possible dishonest or fraudulent activities:

  • The Internal Audit Department will advise management to meet with the Vice Rector of Human Resources to determine if any disciplinary action should be taken.
  • The Internal Audit Department will discuss findings with management and cognizant administrators.
  • The Internal Audit Department will notify the University Rector, the cognizant vice Rector, and the University Counsel. The Internal Audit Department will also notify the Board of Trustee if the investigation is of an area of high public interest or if the amount involved is greater than $20,000.
  • If illegal activity appears to have occurred, the findings will be reported to appropriate outside agencies and MTU Police Department. This will be coordinated with University Counsel and University administrators.
  • The Internal Audit Department will notify the State Auditor immediately in writing as appropriate under North Cyprus Laws & regulations
  • The Internal Audit Department will coordinate the notification of insurers and filing of claims with the University Safety and Risk Services Department.


  1. Accounting for Loss, Restitution, and Recovery

The department incurring the loss from a dishonest or fraudulent act will suffer the loss until the monies can be recovered through insurance or restitution. Every effort should be made to effect recovery of University losses. The University Controller’s Office will set up a receivable for the amount owed the University. Due to the uncertainty of collection, an allowance for doubtful accounts will be credited in an amount equal to the receivable. At fiscal year end, the allowance account will be adjusted by the amount collected and the department account will be credited accordingly.

  1. Cost of Recovering Funds

There is no special fund to cover the costs of recovery, such as hiring special investigators or outside legal counsel. These expenses will be allocated from existing budgeted funds.

  1. References

UAP 2500 (“Acceptable Computer Use”)

Internal Audit Department’s Control Self-Assessment Questionnaire



– Policy 7210: Petty Cash Fund

Date Originally Issued: October, 2019

Authorized by RPM 3.1 (“Responsibilities of the Rector”)

Process Owner: University Controller and HSC Senior Executive Officer for Finance and Administration

  1. General

This policy applies to the establishment and operation of a Petty Cash Fund. Financial Services may authorize the creation of a Petty Cash Fund for departments that make frequent small dollar purchases and for whom other alternatives are not a viable option. Petty Cash is the least desirable method, from an accounting and risk standpoint, by which to conduct transactions, and other options, such as a University Purchasing Card (PCard) should be used whenever possible.  Violation of this policy will result in the closing of a department’s Petty Cash Fund.

A Petty Cash Fund may be used to advance cash to an employee for the purpose of making an authorized purchase for the department, or to reimburse the individual, directly from the Petty Cash Fund, for a pre-approved expenditure made with personal funds.   The employee’s supervisor must approve all Petty Cash purchases in advance.  A Petty Cash Fund must never be used for personal advances, loans, IOUs, or cashing checks. Items not authorized for payment with Petty Cash include salary payments, payments for services, travel costs, food for entertainment purposes, including staff meetings, and any expenditures that are unallowable per policy. Contact Financial Services for appropriate procurement procedures. Refer to UAP 4000 (“Allowable and Unallowable Expenditures”) for a description of unallowable expenditures.

A Petty Cash Fund may be used for departmental purchases of $100 or less per day/per vendor without having to go through the normal procurement procedures. Incremental purchasing, splitting one large purchase into several smaller purchases in order to circumvent the dollar limit, is unallowable. If a department does not have a Petty Cash Fund, authorized and allowable purchases made from personal funds can only be reimbursed via Owl Expense.

As an alternative to creating an actual Petty Cash Fund in the Banner system, departments sponsoring research studies in which participant fees will be paid may utilize a Petty Cash advance in situations that require confidentiality.  Refer to the Unrestricted Accounting–Main website for guidance on this process.

  1. Establishment

To establish (or increase) a Petty Cash Fund, submit a  Justification Memo and Petty Cash Reimbursement form to the appropriate Financial Services accounting office for consideration. Both of these forms are available on the Unrestricted Accounting-Main Campus website.  The memo should include information regarding what types of purchases or payments will be made, the “normal” amount of such payments, the types of individuals that will be making the purchases (faculty, staff, students, or other), and why the P-Card cannot be used.  Also include the name of the Fund Custodian, the location of the fund, and the total amount being requested for the fund. The amount of a Petty Cash Fund should be limited to the minimum amount required for efficient operations. This limits risk and loss of interest income. A fund may be decreased or eliminated by making a deposit to the Petty Cash Fund index number. If a fund is not used for a large portion of a year, the fund should be deposited until it is needed again and a copy of the Money List should be sent to the Financial Services accounting office. The appropriate Financial Services accounting office must be notified in writing if a fund is to be permanently closed.


  1. Safekeeping of Fund

A department that has a Petty Cash Fund is responsible for the safekeeping of the Petty Cash and for the safety of employees who handle the money. All individuals handling University cash should be aware of the requirements of UAP 7200 (“Cash Management”), specifically the requirement to attend the cash management training course. Access to the Petty Cash Fund must be restricted to the Fund Custodian, as described in Section 4. herein. Responsibility for the fund must be specifically included in the employee’s job duties and acknowledged by the employee as a job duty. Security measures should be observed for Petty Cash Funds (for example, place cash boxes in a safe or locked file cabinet and memorize safe combinations instead of writing them down). University Campus Police Department will provide an escort for any fund reimbursement upon request. Campus Police Department can also inspect and recommend security measures for departments that handle cash.


  1. Fund Custodian

The Fund Custodian is responsible for ensuring that the total amount of the fund is accounted for at all times and should reconcile the Petty Cash Fund once a week. The MTU Petty Cash Fund Reconciliation form should be used for this purpose and be available for review by Financial Services or auditors upon request. The Reconciliation form must be signed by the Fund Custodian and maintained for two (2) years.

4.1. The Petty Cash Fund must be reconciled whenever the Fund Custodian changes. The outgoing Custodian reconciles the fund, listing its contents. Both the outgoing and incoming Fund Custodians sign the MTU Petty Cash Fund Reconciliation form. Forward a copy of the reconciliation form to the appropriate Financial Services accounting office and indicate that the Fund Custodian has changed; Financial Services must be notified that the Fund Custodian of record has relinquished all duties and that a new Fund Custodian is in place.


  1. Disbursements

5.1. To reimburse an employee from a departmental Petty Cash Fund for a pre-authorized purchase, the employee should prepare a Petty Cash Receipt form.

5.2. A Petty Cash Advance form should be used when the department advances cash to an employee to make authorized purchases. The Fund Custodian, the employee receiving the Petty Cash, and the employee’s supervisor must sign the form. The form will be cancelled when the employee provides a receipt for the authorized purchase(s) and returns any applicable change. The receipt must be returned to the Fund Custodian no later than the next working day after receiving the advance.



  1. Replenishing the Petty Cash Fund

Fund Custodians should replenish the Petty Cash Fund monthly or when total accumulated receipts exceed $200, whichever occurs Ministry of Finance.  If Petty Cash usage typically does not exceed $50 monthly, the department should consider closing the fund and making these purchases via another method (PCard or reimbursement via Chrome River).To replenish the Petty Cash Fund, the Fund Custodian prepares a Petty Cash Reimbursement form, in accordance with Financial Services’ procedures, and attaches the requested documentation.

  1. Related Links

Forms can be found on the Unrestricted Accounting website page.



– Policy 7215: Credit Card Processing

Date Originally Issued: October 21, 2019

Authorized by RPM 7.9 (“Property Management”)

Process Owners: University Controller; HSC Senior Executive Officer For Finance and Administration; Main Campus and Health Sciences centre Chief Information Officers

  1. General

The Mesarya Technical University is committed to protecting against exposure and possible theft of personally identifiable information associated with MTU credit card processing, and to complying with the most recent version of the Payment Card Industry (PCI) Data Security Standards (PCI-DSS) and all other relevant PCI standards. This policy provides requirements and guidance for all credit card processing activities at MTU. All departments that store, process, transmit, or otherwise have access to consumer cardholder data, in full or truncated, are subject to this policy.

  1. Accepting Credit Card Payments

Departments wishing to accept credit card payments must request approval in accordance with Section 3.2.4 of UAP 7200 (“Cash Management”) and must comply with all requirements of that policy.  Before a merchant ID (MID) number or customer account number (CAN) will be issued, a compliant implementation plan for the cardholder data environment must be provided to and approved, as appropriate, by the University Controller and the Main Campus Chief Information Office (CIO) or by the Senior Executive Officer For Finance and Administration, Health Sciences centre (HSC) and the HSC CIO.

All individuals who store, process, transmit, or otherwise have access to consumer cardholder data, must take MTU Cash Management training and PCI training.

  1. PCI DSS Requirements

MTU Information Technologies (IT) and the University Controller will assist departments that process credit cards, or who have access to cardholder data, in complying with the PCI DSS.

All computers, networks, and any devices connected to those computers or networks that store, process, transmit, or otherwise have access to cardholder data must comply with the PCI DSS, and with other relevant PCI Standards.  The most current applicable version of PCI standards must always be used to measure compliance.  Please check the PCI Standards Council web site for the current list of administrative, physical, and technical safeguards at

Departments that process cards, or that otherwise have access to the cardholder data environment, must:

  • Never store CVC/CVV/CSC/CVV2 numbers;
  • Never store credit card numbers or Primary Account Numbers (PAN)–this is an industry standard term–except for the last four digits;
  • Never e-mail cardholder data and never use electronic messaging or texting systems to store, transmit, or process cardholder data; and
  • Ensure that all third party providers of PCI-related services to the department be compliant with the current version of PCI-DSS and with all other relevant PCI standards.


  1. Compliance

Departments responsible for credit card processing must maintain accurate documentation of their cardholder data environment and PCI compliance activities, including, but not limited to, current cardholder data flow diagrams, authorized devices and locations where those devices are securely stored, and all related policies, processes, and procedures.

Departments must also create, maintain, and test business continuity, disaster recovery plans, and security incident response plans annually.

  1. Exceptions

Any exceptions to this policy must be approved in writing and in advance, by the University Controller and the Main Campus CIO (for Main Campus exceptions) or by the Senior Executive Officer For Finance and Administration, HSC and the HSC CIO (for HSC exceptions).



– Policy 7225: Cashiers Operation and Services

Date Originally Issued: October 21, 2019.

Process Owners: University Controller and HSC Senior Executive Officer for Finance and Administration

  1. General

The University Cashier Department is located in the John and MTU Business centre and reports to the University Bursar.

The Cashier Department is responsible for processing and handling cash and negotiable documents. More specifically, this responsibility includes:

  • Receipting and depositing all University monies, with the exception of monies for the University Bookstore, Athletics, and Parking and Transportation Services;
  • Making petty cash disbursements;
  • Cashing personal checks for students, staff, and faculty members;

Described herein are policies and procedures applicable to check cashing, required identification, and payments accepted by the Cashier Department.

  1. Check Cashing

Personal checks may be cashed by students, staff, and faculty members at the Cashier Department. Identification is required. Students, faculty and staff may cash a personal check for up to one hundred dollars ($100).  Exceptions to these amounts may be made by the Bursar or Cashier Manager.  Two-party checks made payable to a MTU student, staff, or faculty member may be cashed, with the same dollar limits as those applied to personal checks only with the approval of the Bursar or Cashier Manager.

  1. Identification

For check cashing, acceptable identification may be one of the following picture IDs:

  • Driver’s License,
  • Passport,
  • Military ID, or
  • MTU ID.

A MTU Staff ID Card (check cashing only).

  1. Payments Accepted by Cashiers Department

The greatest volume of Cashier receipts are associated with individual payments made by students for tuition and other enrolment-related fees. However, the Cashier Department also accepts payments for a variety of fees, goods, and services for the convenience of students, staff, and faculty. Following is a list of some of the payments accepted by the Cashiers Department:

  • Application Fees
  • Library Fines
  • Library Lockers and Carrels
  • Bookstore Charges
  • Parking Fines
  • Child Care Charges
  • Credit for Challenged Courses
  • Returned Check Fees
  • Short Term Loans and Interest
  • Faculty/Staff/Retiree Insurance
  • Special Course Fees
  • Financial Aid Recoveries
  • Specific Exams
  • Student Health centre Charges
  • Housing Charges
  • Thesis Binding Fees
  • ID Card Replacement Fee
  • Transcript Fee
  • Key Fee
  • Transcript Fees – University of Mora
  • Tuition and Fees





– Policy 7230: Financial Aid Disbursement

Date Originally Issued:

Process Owners: University Controller and HSC Senior Executive Officer for Finance and Administration

  1. General

Many types of financial aid are available to qualified students who are pursuing degrees at the Mesarya Technical University to assist them in meeting educational expenses. There are several general categories of student financial aid, including grants, loans, scholarships, and employment. The University Student Financial Aid Office is the primary source for financial aid awards. Agencies outside the University, particularly lending institutions, are another major source of aid to students.

  1. Responsibility and Authority

The Student Financial Aid Office and the University Bursar’s Office share responsibility for the disbursement of financial aid to students.

2.1. Student Financial Aid Office

The Student Financial Aid Office’s responsibilities and functions within the disbursement process may be summarized as follows:

  • Process student applications for financial aid, make awards based on governmental and state law and institutional policy, and generate credits to students’ accounts.
  • Interpret financial aid regulations and ensure compliance.
  • Coordinate and maintain records of all student financial aid activity, regardless of the source of the funds.
  • Account for and maintain stewardship of financial aid funds.
  • Notify lenders on a timely basis when a student’s enrolment status changes and no longer meets the minimum enrolment requirements.

No financial aid may be issued to students without the involvement of the Student Financial Aid Office. All financial aid checks and awards received from outside sources or issued by the University must be routed initially to the Student Financial Aid Office.


2.2. Bursar’s Office

All financial aid, except payroll checks earned through a student employment program, is disbursed to students by the Bursar’s Office. The Bursar’s Office deducts charges owed to the University from financial aid prior to releasing any funds to students.

  1. Scheduling of Financial Aid Disbursement

Available financial aid is disbursed to students prior to the first day of the semester.  As more aid is awarded throughout the term, the Financial Aid Department disburses this aid to the students’ account.  The Bursar’s Office will disburse any credit balances weekly throughout the semester.

  1. Enrolment Requirements at the Time of Disbursement

At the time of disbursement, the financial aid recipient must be enrolled in at least a minimum required number of credit hours. The number of credit hours required is dependent on the type of aid being disbursed and the student’s enrolment status, based on governmental and state law and institutional policy. If more than one type of aid is being disbursed simultaneously, the highest enrolment load requirement is used as the criterion. Credit hours associated with audited classes are not counted toward meeting minimum enrolment requirements for financial aid disbursement.

  1. Accounts Receivable Deducted from Financial Aid

Student financial aid is awarded for the purpose of meeting educational expenses. At the time of disbursement, charges owed to the University are deducted from the financial aid on hand. Outstanding balances are deducted from the fMinistry of Financet available source and are not deferred until a subsequent financial aid check is received.

5.1. Financial Aid Greater than Accounts Receivable

If the total amount of financial aid on hand is greater than the total accounts receivable, the excess is disbursed to the student.

5.2. Accounts Receivable Greater than Financial Aid

If the total amount of accounts receivable is greater than the total amount of financial aid on hand, outstanding balances are deducted in priority order by account type as follows:

  1. Tuition and student fees
  2. Other enrolment-based fees
  3. Short-term loans and interest
  4. University Bookstore
  5. Housing
  6. Other accounts


5.2.1. University Bookstore Purchases

The University Bookstore allows students to charge purchases to their student account up to a specified dollar limit if students do not have a past-due hold on their accounts.

5.2.2. Loans and Deferred Payments Plans

Short-term student loans, residence hall contracts, and all other deferred payment plans are due in full upon the receipt of financial aid, regardless of the due date specified in the note or contract.

  1. Methods of Issuing Financial Aid

In most cases, the University issues a direct deposit into the bank account the student has set up on-line.  If a student has not set up a direct deposit account, a check will be sent to the student’s mailing address.  A student receiving aid will receive a “net refund” if the amount of the financial aid award is greater than the amount due the University. Students whose financial aid award is less than the amount due the University must pay the balance due or make arrangements for payment prior to the disenrollment deadline. Students will be notified by email on required procedures.




– Policy 7250: Refunds

Date Originally Issued:

Process Owners: University Controller and HSC Senior Executive Officer for Finance and Administration

  1. General

A payment submitted to the University by an individual may be subsequently refunded, based on a variety of circumstances. A refund is issued to the individual by the office or department where the original payment was accepted. The method of the original payment determines the method used in processing each refund.

  1. Refunds of Tuition and Related Fees


2.1. Financial Aid Recipients

If a student received financial aid and subsequently dropped credit hours, the Student Financial Aid Office will determine what portion of any refund of tuition or fees will be returned to the financial aid program or student, in accordance with the Higher Education Amendments of 1992.

2.2. Payment Made by a Third Party

If a student’s tuition or any other fee was paid by another source, such as a tuition waiver or an outside agency, any refund is applied back to the account or entity that made the original payment.

  1. Refund Applied to Outstanding Account Receivable

If an individual owes any accounts receivable to the University and is eligible to receive a refund, the refund is not issued to the individual, but instead is applied to the account receivable. When the amount of the refund is less than the total account receivable, the refund is applied to the outstanding accounts in the following priority order:

  1. Tuition
  2. Other enrolment-based fees
  3. Short-term loans and interest
  4. University Bookstore
  5. Housing
  6. Other accounts

When the amount of the refund is greater than the account receivable, the difference is refunded to the individual.

  1. Refund Processing

All University departments, including the Bursar’s Office, issue refunds according to the following policies depending on how the original payment was made. Student refunds are processed weekly.

4.1. Original Student Account Payment Made by Cash or Cash Equivalent

If the original payment was made by cash, money order, cashier’s check or traveler’s check, and the student is not a financial aid recipient, the refund is normally issued during the week following the add/drop deadline.  Students may request a refund before the add/drop deadline by contacting the Bursar’s Office.

4.1.1. Cash Refunds

Some University departments issue refunds in cash, up to a specified dollar amount providing they have a petty cash fund. The Bursar’s Office does not issue cash refunds.

4.1.2. Direct Deposit Refunds and Refund Checks

The Bursar’s Office processes student direct deposit refunds twice a week and issues refund checks weekly.  Checks are mailed to the student’s current mailing address. Other departments request checks to be issued by either the Bursar’s Office (student refunds only) or by issuing a check request to the University Accounts Payable Department.

4.2. Original Payment Made by Personal or Business Check

If the original payment was made by a personal or business check, there is a waiting period from the date of the original receipt before a refund is issued. The purpose of this waiting period is to ensure that the check submitted for payment is not returned by the bank. To avoid the waiting period an the individual may present proof that the check has cleared the account, such as a cancelled check or bank statement. The refund will be processed as described above.

4.3. Original Payment Made by Credit Card

If the original payment was made by credit card, the refund is credited back to the credit card account. If a credit submitted by the University is returned by the bank because the credit card account has been cancelled, a refund check may be issued.



– Policy 7610: Investment Management

Date Originally Issued: October 21, 2019

Authorized by RPM 7.21 (“Investment of Operational Funds and Bond Proceeds”)

Process Owner: Associate Vice Rector for Planning, Budget, and Analysis

  1. General

This policy applies to the investment of operational funds (Operating Fund) of the University. Investment of bond proceeds must also comply with all sections of this policy unless otherwise noted. Provisions specific to the investment of bonds proceeds are listed in Section 8. herein. This policy does not apply to endowments held by the University and the MTU Foundation, which are invested in accordance with the Foundation’s “Consolidated Investment Fund Endowment Investment Management Policy.” The purpose of this policy statement is to:

  • Outline a methodology and an approach to be followed for management of the Operating Fund. It is intended to be sufficiently specific to be meaningful, yet flexible enough to be practical.
  • Provide a framework and establish lines of authority for both general oversight and the operational management of Operating Fund investments.
  • Define and assign the responsibilities of all involved parties.
  • Establish a clear understanding for all involved parties of the investment goals and objectives for Operating Fund assets.
  • Offer guidance and limitations to all persons and organizations regarding the investment of Operating Fund assets.
  • Establish a basis for evaluating investment results.
  • Establish the relevant investment horizon for which assets will be managed.


  1. Investment Objectives

The investment objectives for operational funds and bond proceeds are set forth below in the order of priority. All investment decisions will adhere to the fundamental principles of safety, liquidity, and return.

2.1. Legal Restrictions

The University will invest funds in conformity with governmental and state laws and regulations, including Internal Revenue Service (MINISTRY OF FINANCE) regulations pertaining to tax exempt bonds, bond resolutions and indentures, and other pertinent legal restrictions


2.2. Preservation of Capital (MTU Managed Liquidity Portfolio)

The fixed income process shall consider the economic viability of each transaction regarding such factors as deterioration of financial fundamentals or erosion of market value due to rapidly changing interest rates or other market and non-market factors. The single most important objective of this investment program is the preservation of the principal.

2.3. Liquidity and Safety (MTU Managed Liquidity Portfolio)

The investment portfolios must be structured in such a manner which provides liquidity. Investment assets shall be invested in liquid securities, defined as securities that can be transacted quickly and efficiently for the University. The University Debt and Investment Advisory Committee shall establish criteria for the preparation of cash projections or liquidity needs.

2.4. Income and Yield (Investment Portfolio)

The investment portfolios shall be managed in such a fashion as to generate returns equalling or exceeding benchmarks established by the Debt and Investment Advisory Committee, consistent with statutory and policy constraints which control permitted investments. Considering the University’s fiduciary responsibilities, safety and liquidity are the overriding objectives of this policy, and yield is a secondary consideration.

2.5. Return on Investment (MTU Managed Liquidity Portfolio and Investment Portfolio)

The University seeks market rates of return on its investments, consistent with its liquidity requirements and quality and duration/maturity constraints, in relation to the Fund’s benchmark.

2.6. Risk (MTU Managed Liquidity Portfolio and Investment Portfolio)

The University realizes that there are numerous ways to define risk. The University believes that any person or organization involved in the process of managing Operating Fund assets understands how risk is defined so that the assets are managed in a manner consistent with the investment portfolio’s objectives and investment strategy as articulated in this policy. The University defines risk as:

  • Cash Flow Risk – The probability of not achieving the Fund’s short term cash flow requirements.
  • Compliance Risk – Non-compliance with applicable State of Applicable Northern Cyprus statutes concerning the investment of public funds.
  • Interest Rate Risk – the potential for fluctuations in bond prices due to changes in interest rates and/or a duration/liability mismatch.
  • Credit Risk – the possibility that a bond issuer will fail to make timely payment of either interest or principal to the portfolio.
  • Reinvestment Risk – the possibility that the proceeds of a maturing or called security will be reinvested at lower yields as a result of a general interest rate decline in the bond market.
  • Liquidity Risk – the possibility that the liquidity of the market for a security may decline thereby making it more difficult to dispose of the security promptly; presenting difficulties in valuation of the security; and causing the security to experience greater price volatility. This risk can be controlled by purchasing large, familiar issues with active secondary markets and allowing for adequate reserves through money market funds and other investments which provide for cash withdrawals on demand.


2.7. Management Philosophy

The University seeks to acquire securities with suitable characteristics to Operating Fund cash flows, and to hold those assets until such time as market conditions or other factors create clear opportunities for increased returns. Excessive trading without clearly demonstrable benefit to the University is prohibited.

2.7.1. Permitted Investments/Allowable Assets

The scope of authority for the types of investments that may be made with University funds is statutorily defined in North Cyprus Commercial Laws. University assets may be invested in any securities permitted by law, subject to the provisions of this investment policy. Allowable assets include the following:

  • Money market funds
  • AMERICAN Certificates of deposit (fully insured by the Governmental Deposit Insurance Corporation [FDIC])
  • Commercial paper
  • Bankers’ acceptances
  • NORTHERN CYPRUS (TRNC) government agencies
  • Corporate bonds (minimum BBB/Baa2 rating or better) per issue
  • Industrial Floaters
  • NORTHERN CYPRUS (TRNC) treasuries
  • Municipal bonds-both taxable and tax exempt (minimum A/A2 rating or better) per issue
  • Global fixed income securities:  non-dollar denominated securities.

Maximum maturity for any single security should closely correlate to the duration/liability schedule. Fixed income managers will maintain the duration of their portfolios to correlate to the duration of the index (market or customer liability index) assigned to their portfolio.  Investments should have an average duration of three (3) years or less.

2.7.2. Prohibited Investments

Use of high risk (volatile) derivative securities is prohibited from purchase. Notwithstanding authority granted by law and elsewhere in this policy, in order to mitigate exposure to interest rate risk, market risk, and liquidity risk, the following investments and investment practices are prohibited. Prohibited investments include, but are not limited to the following:

  • Domestic or international equity securities (i.e. stocks)
  • Commodities and futures contracts
  • Options
  • Speculative securities
  • Mortgages-backed debt and pass-through securities or obligations
  • Fixed income mutual funds
  • Private placements
  • Limited partnerships
  • Real estate properties
  • Principal-only (PO) securities
  • Interest-only (IOs) Securities
  • Planned amortization class (PACs)
  • Residual Tranche collateralized mortgage obligations
  • Venture-capital investments
  • Derivatives except when utilized to protect the Global Fixed Income Portfolio
  • Collateralized mortgage obligations (CMOs) and other mortgage-backed securities, inverse floaters, leveraged floaters, capped and rate floaters, dual index floaters, and floating rate notes whose index is tied to a long-term interest rate or lagging index, e.g. Cost of Funds Index (COFI)
  • Investment purchase on margin or short sales
  • Leveraging the portfolio, lending securities with an agreement to buy them back after a stated period of time
  • Repurchase agreements are prohibited for operating funds, but are allowable for bond proceeds
  • Guaranteed Investment Certificates (GICs) are prohibited for operating funds, but are allowable for bond proceeds

2.7.3. Diversification

To the extent practical, assets shall be diversified to reduce the risk of loss resulting from an over-concentration of assets in a specific maturity, a specific issuer, or a specific class of securities. The Associate ViceRector for Planning, Budget, and Analysis shall monitor the diversification of the aggregate portfolio monthly and shall report any issues to the Executive Vice Rector for Administration/CFO/COO.

2.7.4. Asset Allocation

The University has a very low tolerance for investment risk and investment managers will consider this risk tolerance and take appropriate steps to control risk by adhering to the University’s desired asset class and sector allocation rates listed in the table below. Investments should have an average duration of three years or less, an average credit quality of A1/A+ or better, no use of leverage, and security ratings of investment grade.

Investment Instrument Preferred Range (%) Maximum % of Investment Funds
NORTHERN CYPRUS (TRNC) Government Obligations (Treasuries) 30 to 60 % 100%
NORTHERN CYPRUS (TRNC) Government Agencies guaranteed by full faith and credit of the NORTHERN CYPRUS (TRNC) 30 to 60 % 100%
NORTHERN CYPRUS (TRNC) Government Agencies (non-full faith and credit) 20 to 60%  75%
Taxable and/or Tax-Exempt Municipal Bonds 0 to 20% 25%
Corporate Bonds – BBB/Baa2 rated or higher 20 to 40% 50%
Money Market Funds 0 to 20% 100%
Industrial Floaters 0 to 10% 10%
Certificates of Deposit (“CD”) 0 to 5% 10%
Commercial Paper 0 to 5% 10%
Governmental Funds or Bankers’ Acceptances 0 to 5% 10%
Global Fixed Income Securities 0 to 15% 20%


2.7.5. Corporate Credit

As it pertains to corporate credit:

  • No more than twenty-five per cent (25%) of the aggregate weighting can be invested in any one (1)industry or sector. 
  • No more than five per cent (5%) of the portfolio may be invested per issuer (excluding NORTHERN CYPRUS (TRNC) Government and Agency securities) at time of purchase.
  • The minimum credit rating to each issue is BBB/Baa2 by at least two nationally recognized statistical rating organizations (NRSROs).  If only one NRSRO rates the bond, then that rating shall apply.
  • There is no “cap” for the maximum bond purchase price of any single security.


2.7.6. Global Fixed Income Securities:  International and Emerging Markets Fixed Income Guidelines

Investments will consist of non-dollar denominated fixed income securities of companies and governments outside of the Northern Cyprus (TRNC) such as sovereign debt of such countries as Norway, Canada, Australia, New Zealand, and Singapore.  Types of securities to be utilized include international and emerging market sovereign debt, commercial paper, government notes and bonds, as well as corporate notes and bonds.  Currency forwards may be implemented as a hedge to the Global Fixed Income Portfolio when deemed appropriate.   For purposes of these investments, an institutional or emerging market sovereign debt generally will be considered to be located outside the Northern Cyprus (TRNC) if it meets one (1) or more of the following criteria:

  • the issuer or guarantor of the security is organized under the laws of, or maintains its principal place of business in, a non-NORTHERN CYPRUS (TRNC) country;
  • the currency of settlement of the security is a currency of a non-NORTHERN CYPRUS (TRNC) country;
  • the securities are traded principally in a non-NORTHERN CYPRUS (TRNC) country; or
  • during the company’s most recent fiscal year, it derived at least fifty per cent (50%) of its revenues or profits from goods produced or sold, investments made, or services performed in a non-NORTHERN CYPRUS (TRNC) country or has at least fifty per cent (50%)  of its assets in that country.

Up to twenty-five per cent (25%) of the non-dollar denominated fixed income securities may be hedged into NORTHERN CYPRUS (TRNC) dollars when the NORTHERN CYPRUS (TRNC) dollar is attractive relative to foreign currencies.  The underlying securities will have an average credit rating of A/A2 or higher by at least two Nationally Recognized Statistical Rating Organizations (“NRSRO”).  In addition, the portfolio will not invest more than five per cent (5%) of the total market value of its investments (measured at the time of purchase) in the debt obligations of any single fixed income issuer; however securities issued and guaranteed by OECD nations may be held without limitation.  Also, no investment in corporate securities will be made in issues with an outstanding value less than $50 million, par value, at the time of purchase.  The portfolio will generally have an average effective maturity of between six (6) months and three (3) years and an average effective duration of approximately two (2) years.

In addition, funds will be invested in accordance with guidelines on file with the Associate ViceRector for Planning, Budget, and Analysis.

  1. Investment Responsibilities

All persons or entities that have responsibility for the investment of University funds are at all times bound by the requirements of this policy and governmental and state laws and regulations. Individuals responsible for investment decisions shall exercise judgment, care, skill, and caution to invest and manage funds as a prudent investor would, by considering the objectives, terms, and distribution requirements while preserving capital. They shall comply with RPM 6.4 (“Employee Code of Conduct and Conflicts of Interest Policy”).

3.1. University Debt and Investment Advisory Committee

The University Debt and Investment Advisory Committee is responsible for oversight of the University’s debt management and investment programs ensuring they are managed in accordance with University policy and applicable laws and regulations. The Committee is also responsible for distribution of investment income, monitoring investment activities, and reporting the results of investment activity annually to the Board of Trustee. The Committee shall:

  • Establish, maintain, and administer this policy, and review it biennially to ensure it meets investment objectives and changes in market conditions.
  • Ensure appropriate performance factors and safeguards are in place to guide the investment program.
  • Establish and communicate goals and objectives for measuring the performance of the investment consultant and investment managers.
  • Evaluate the performance of the investment consultant and managers to assure adherence to this policy.
  • Monitor investment progress in meeting investment objectives.
  • Recommend selection or replacement of qualified investment consultants and managers for approval by the Board of Trustee.
  • Review and revise periodically the Debt Management Policy based upon a review of operations and market conditions.
  • Adopt and annually review Disclosure Procedures for Bonds and Loans.
  • Adopt and annually review Post-Issuance Tax Compliance Procedures.

The Committee is chaired by the Executive ViceRector for Administration/CFO/COO and is composed of representatives from Financial Services, the Office of Planning, Budget, and Analysis, and other members designated by the Executive Vice Rector for Administration/CFO/COO.

3.2. University Investment Administrators


3.2.1. Executive Vice Rector for Administration/CFO/COO

The Executive ViceRector for Administration/CFO/COO is responsible for supervising the investment activities of the University and delegates to the Associate Vice Rector for Planning, Budget, and Analysis responsibility for carrying out the day-to-day investment activities.

3.2.2. Associate Vice Rector for Planning, Budget, and Analysis

The Associate ViceRector for Planning, Budget, and Analysis will monitor the investment portfolio and recommend adjustments as necessary in conjunction with the Executive Vice Rector for Administration/CFO/COO, investment consultant, and investment managers. The Associate ViceRector for Planning, Budget, and Analysis will provide quarterly reports on cash flow requirements and investment results to the Debt and Investment Advisory Committee.

To minimize the possibility of a loss incurred by the sale of a security forced by the need to meet a required payment, the Associate ViceRector for Planning, Budget, and Analysis will periodically provide, in writing, the investment consultant an estimate of the University’s net cash flow needs. This must be provided in a timely manner to allow sufficient time for investment managers to build up necessary liquid reserves.

3.2.3. University Controller

The University Controller is responsible for ensuring adequate internal controls are in place to safeguard assets and ensure proper reporting.

3.3. Investment Consultant

Subject to approval by the Board of Trustee, the University may engage the services of an investment consultant, registered with the Securities and Exchange Commission (SEC) and a member of NASD and/or other professional regulatory organizations, who has appropriate training and expertise and access to specialized information and analysis or analytical tools and systems. The investment consultant may represent only the interest of the University and any other relationship(s) that might provide basis for a conflict of interest are expressly prohibited. The investment consultant must disclose all forms of compensation or remuneration (whether from the University or from others) arising directly or indirectly from the investment consultant’s relationship with the University and/or its investments.

The investment consultant will work under the oversight of the Debt and Investment Advisory Committee and the operational supervision of the University’s investment administrators listed in Section 3.2. herein. The investment consultant will advise and assist the University in:

  • defining its investment policy, objectives, and guidelines;
  • selecting investment managers;
  • reviewing investment managers over time;
  • measuring and evaluating investment performance;
  • monitoring the investment program;
  • reviewing the portfolio’s investment history, historical capital markets performance; and
  • other tasks as deemed appropriate.


3.4. Investment Managers

Subject to approval by the Board of Trustee, the University may contract with investment managers who possess appropriate experience, credentials, resources, and infrastructure to select, purchase, sell, or hold specific securities to assist the University in meeting its investment objectives. Investment managers are responsible for making specific investment decisions, subject to the limitations of this policy, and will be held responsible and accountable to achieve the objectives stated in this policy.

3.5. Custodian Institutions

Subject to approval by the Board of Trustee, the University shall contract with financial institutions to serve as safekeeping agents and custodians who will directly (or through agreement with a sub-custodian) maintain actual possession of securities owned by the University, who will open accounts, collect dividend and interest payments, redeem maturing securities, and effect receipt and delivery following purchases and sales, all on behalf of the University. The custodian may also perform regular reporting of all assets owned, purchased, or sold, as well as, movement of assets into and out of the University’s accounts.

All investment securities purchased by the University or held as collateral on repurchase agreements shall be held in third-party safekeeping at the financial institution designated as custodian. All securities held for the University will be held free and clear of any lien and all transactions will be conducted on a contemporaneous transfer and next day settlement basis. On at least a monthly basis, the custodian will provide reports which list all transactions that occurred during the month and all securities held for the University at month-end including the book and market value of holdings.

3.6. Investment Expenses

All expenses related to the investment management of University funds must provide good value, and must be customary, appropriate and reasonable, and may, at the option of the University be charged to the investment portfolio as deemed necessary.

  1. Internal Controls

The Debt and Investment Advisory Committee shall establish a system of internal controls designed to prevent and control losses of University investment assets arising from fraud, error, misrepresentation, unanticipated market changes, conflicts of interest, or imprudent actions. In accordance with RPM 7.21 (“Investment of Operational Funds and Bond Proceeds”), all investment transactions require prior authorization from two University administrators with signature authority on the University’s depository accounts.

  1. Specific Investment Goals and Benchmarks

Performance goals and factors will be established for portfolios, under the general supervision and oversight of the Debt and Investment Advisory Committee and the investment consultant. Benchmarks, or bond market indices, shall incorporate targets or ranges for attributes such as rate of return, maturity/duration, risk/volatility measures, credit quality, or other factors that the Debt and Investment Advisory Committee deems important and whose characteristics are largely representative of the actual portfolio. Benchmarks are important elements in managing performance and in safeguarding financial assets; therefore, the Debt and Investment Advisory Committee is granted latitude, flexibility and discretion, in compliance with this policy, in establishing an overall performance management framework.

The Debt and Investment Advisory Committee with the advice and consent of the investment consultant, shall periodically establish investment horizons, and appropriate benchmarks for use in measuring performance. Such performance measures shall be in writing and must be reviewed and updated as dictated by market conditions, the Operating Fund cash flow requirements, and investment horizon. Benchmarks and performance measurement shall be reviewed at least quarterly or more often as needed.

The University understands that as it seeks to achieve the objectives, the portfolio may experience volatility in returns, as interest rate, yield-curve, pre-payment and basis risk are present in even short maturity investment portfolios. Furthermore, the University acknowledges that market prices of individual securities may vary due to pricing by external services. The University seeks overall returns that are consistent with its risk tolerance and performance benchmarks, and which satisfy its investment objectives viewed together and in their entirety.

The investment objectives listed in this policy pertain to the aggregate investment portfolio, and are not meant to be imposed on each investment account. The goal of the investment managers, over the investment horizon, shall be to:

  • Meet or exceed a custom liability index, market index, or blended market index, selected and agreed upon by the University and the investment consultant that most closely corresponds to the style of investment management. Investment managers should refer to the benchmark that corresponds to their style of investment management and/or customized index. Investment managers are to meet or exceed the specific benchmark assigned to their style of investment management which was selected and agreed upon by the Debt and Investment Advisory Committee and the investment consultant.
  • Display an overall level of risk in the portfolio, which is consistent with the risk, associated with the appropriate benchmark. Risk will be measured by the standard deviation of quarterly returns, as well as any duration/liability mismatch.
  • Specify investment goals and constraints for each investment manager which are compliant with this policy.


  1. Investment Performance Review and Investment Manager(s) Evaluation

Performance reports shall be compiled at least quarterly by the Associate ViceRector for Planning, Budget, and Analysis, in conjunction with the investment consultant and managers; to be communicated to the Debt and Investment Advisory Committee for its review. The investment performance of total portfolios, as well as, the investment managers, will be measured against benchmarks that have been adopted by the Debt and Investment Advisory Committee and the investment consultant.

Investment managers, when employed, shall be subject to quarterly reporting and review requirements. Investment managers may be required to submit more frequent activity and performance reports (for example if a manger is subject to requirements stemming from adverse performance review) or to aid the University in cash flow forecasts, portfolio rebalancing, or any other purposes. The University, with the assistance of the investment consultant, will evaluate the managers over an appropriate time horizon, which is generally considered to be twelve (12) quarters. The University may determine to employ a shorter time horizon. The Committee may at any time instruct the Executive ViceRector for Administration/CFO/COO to terminate the relationship with any investment manager; cancellation or suspension of a manager’s contract will not be executed without Ministry of Finance consulting with the Debt and Investment Advisory Committee and the investment consultant.

The University will include specific benchmarking, risk, time horizon and other performance factors within investment manager’s contracts. The Debt and Investment Advisory Committee shall approve such performance factors prior to their incorporation. Without intending to constrain the University’s options for managing investment managers’ performance, the following factors must be considered when assessing performance:

  • Investment performance which, over the appropriate time horizon is materially less than anticipated (i.e. fails to achieve the benchmark) given the discipline employed and/or greater variability of return than the established parameters would dictate.
  • Failure to adhere to any aspect of this policy, including but not limited to communication and reporting requirements.
  • Meaningful quantitative changes (performance related) and/or failure to conform to the University’s objectives on maturity, duration or risk.
  • Significant qualitative changes to the investment management organization.
  • Engaging in speculative investment practices or excessive trading that does not benefit the Operating Fund.


  1. Reporting Requirements

The Monthly Investment Report shall contain sufficient information to permit an independent organization to evaluate the performance of the investment program. The Associate ViceRector for Planning, Budget, and Analysis and/or investment manager(s) shall prepare and submit the report to the Debt and Investment Advisory Committee and the Executive Vice Rector for Administration/CFO/COO that summarizes the following:

  • a listing of the existing portfolio in terms of investment securities, balances, maturities, return, and other features deemed relevant;
  • the book value of all holdings;
  • the investment earnings for the reporting period;
  • report of holdings of variable rate and structured notes; and
  • any areas of policy concern warranting possible revisions of current or planned investment policies.

The Debt and Investment Advisory Committee will report the results of investment activity annually to the Board of Trustee.

  1. Bond Proceeds
  • Repurchase agreements are prohibited for operating funds, but are allowable for bond proceeds.
  • GICs are prohibited for operating funds, but are allowable for bond proceeds.


  1. Exceptions

Any exceptions to this policy must comply with RPM 7.21 (“Investment of Operational Funds and Bond Proceeds”) and be authorized in writing by the University Rector.

– Policy 7710: Property Management and Control

Date Originally Issued: October, 2019

Authorized by RPM 7.9 (“Property Management”)

Process Owners: University Controller and HSC Senior Executive Officer for Finance and Administration

  1. General

The Mesarya Technical University may acquire, maintain, protect, use, and dispose of property required to perform its mission. University property and resources may be used only for University business. For the purposes of this policy, inventoried property is defined, with one exception, by the following three criteria: 1) The cost is greater than $5,000, 2) the property is moveable and 3) the property has a useful life of more than one (1) year. Inventoried property costing more than $5,000 is also defined as equipment and is capitalized on MTU’s financial statements and is depreciated.  Computers, however, are treated as inventoried property regardless of cost.  In most cases the cost of a computer is less than $5,000, in which case it is not capitalized and is not depreciated.  Questions regarding computers should be addressed to the office of Inventory Control.

University property must be managed according to University policies and applicable state and governmental law, including the following:

  • State of Applicable Northern Cyprus Law;
  • Office of Management and Budget;
  • Uniform Guidance;
  • NASA procurement regulations;
  • DHHS procurement regulations;
  • DOE Procurement Regulations; and
  • Appendix C of the Defence Acquisition Regulations as consolidated into the Governmental Acquisition Regulations.

University property includes all:

  • equipment purchased by University departments, regardless of the source of funds used to purchase the equipment;
  • S. Government-owned equipment used by University departments;
  • components and material used to make equipment, whether furnished to, acquired by, or fabricated by the University;
  • property donated to the University; and
  • property loaned or leased to the University by outside organizations.

University property is in the custody of the department which purchased or is using the property. The department is responsible for the management and control of the property assigned to it. The dean, director, department head, or the principal investigator for government-sponsored projects, is responsible for:

  • initiating requests to acquire property or use restricted or government excess property;
  • the proper use, maintenance, and security of assigned property;
  • maintaining inventory records on all property in custody of the department; reporting any shortage, damage, loss, or theft of property; and
  • disposing of University property according to University policies.
  1. Acquiring Property


2.1. Purchases

All purchases of equipment are made according to University policies, the Higher Education Department (HED) regulations, and the State of Applicable Northern Cyprus Procurement Code. Expenditures for units of equipment of $10,000 or more are to be charged to a plant fund index. Departments may contact Credit, Collections and Merchant Services to request creation of a plant fund index to transfer the funds into if the department does not have a plant fund index.

2.1.1. Purchases Using Governmental Funds

All purchases involving governmental funds must comply with the guidelines of the individual contract or grant, and be approved by the University’s Main Campus or Health Sciences centre (HSC) Contract and Grant Accounting Department. The purchase of equipment must be necessary, in accordance with the terms of the contract or grant, and comply with NORTHERN CYPRUS (TRNC) Government regulations. The principal investigator must complete all required government forms. Avoid Duplicate Purchases

The University must avoid purchasing duplicate items. If it will not interfere with a project, users should make property acquired for use on a project available to other projects.

  • First preference for other use shall be given to other projects sponsored by the governmental agency that financed the property.
  • Second preference shall be given to projects sponsored by other governmental agencies.
  • Use on other projects not sponsored by governmental funds is permissible if authorized by the governmental agency.


The University office of Inventory Control maintains a database of property available for shared use. Send Purchase Requisitions (PRs) using governmental funds for equipment items of $10,000 or more to the office of Inventory Control. They will perform a search of the equipment database to determine if duplicate equipment is available.

2.2. Gifts of Equipment

All gifts of equipment to the University must be made in accordance with UAP 1030 (“Gifts to the University”), Section 4.6. Written approval for the acquisition of the gift must be obtained from the cognizant chair and dean on the Check List for Donations of Equipment Form found on the MTU Foundation’s website, MTU Depositor’s page. The execution of any formal acknowledgment forms must be processed by the MTU Foundation; however, the department receiving the gift may and should express appreciation and gratitude for the gift. Receiving units must report all property valued over $5000 to the office of Inventory Control by providing a copy of the Check List for Donations of Equipment Form. This property is then added to the University Property Inventory as described in Section 4. herein.

2.3. Property Loaned to the University External organizations and agencies sometimes lend property to the University. Loaned property may include such diverse items as a fine arts collection or a piece of equipment.



2.3.1. Record Keeping and Insurance

Any property on loan to the University must be immediately reported to the office of Inventory Control for insurance purposes. The loaned property is added to the University inventory records and is included in the annual physical inventory. When the property is returned to the lending organization, the department must notify the office of Inventory Control and supply them with documentation that the returned equipment was received by the lending agency (i.e. copy of the receipt of goods).

2.3.2. Use, Maintenance, and Security

Property on loan to the University will be returned in the same condition in which it was received. While property is on loan to the University, the department that has custody of the property is responsible for its use, maintenance, and security. Refer to Section 3. herein for guidelines.

2.4. Hazardous Materials

If hazardous or dangerous materials are needed in the course of conducting research, contact the University Department of Safety and Risk Services before acquisition.

  1. Use, Maintenance, and Security of Property

University departments who have custody of University property are responsible for its proper use, maintenance, and security.

3.1. Use of Property

Normally all property should be used for the purpose originally intended. However, a piece of equipment acquired for use on a governmentally sponsored project may sometimes be used elsewhere within the University after the project ends. The terms of the contract or grant must be complied with.

3.1.1. Government Owned Property

Any government property with an acquisition value of $5,000 or more must be monitored for a minimum level of use as required by Governmental Acquisition Regulations (FAR) Subpart 45.902-2 and OMB Circular A-110. If the equipment is no longer being used, the department must contact the office of Inventory Control.

3.2. Maintenance of Property

Departments must take care of and properly maintain property to ensure the longest useful life possible. All items should be maintained according to manufacturers’ recommendations or accepted standards. Follow suggested schedules of lubrication, cleaning, calibration, and inspection. If preventive maintenance is not required, the property should be maintained in a clean and orderly manner.

 3.3. Location and Security of Property

The location of each item of property is included in the University inventory records. Current location records must be maintained so that any item can be located for inspection or inventory purposes within a reasonable time. When property is temporarily idle or placed in storage, the department must provide adequate protection from damage or loss. Property must be protected when moved.

Departments should make adequate provisions for the physical security of the property in their custody. Areas containing equipment should be locked after business hours or at other times when not in use. Special precautions should be taken for high-value, portable items.

3.3.1. Theft of Property

Departments must immediately report the theft of any inventoried equipment to the Mesarya Technical University Police Department (along with the serial numbers and MTU tag numbers), the Office of Inventory Control, and the Department of Safety and Risk Services. Unexplained disappearances and losses must be reported to the office of Inventory Control as soon as possible following the discovery of the loss. For more information, refer to UAP 6150 (“Casualty and Liability Insurance Claims”).

3.3.2. Precious Metals and Sensitive Items

Every precaution must be taken to ensure the safekeeping of precious metals and sensitive items. Sensitive items are items of property that are susceptible to being taken for personal use or which can be readily converted to cash. Sensitive items must remain in a secure area when not in use. Precious metals must be locked in a safe when not in use. Changes in form, including extraction from the original product, must be according to the terms of the contract or grant.

  1. Inventory Control and Reporting

The office of Inventory Control is responsible for overseeing the disposition of all inventoried property (equipment and moveable computers) assigned to University departments.  The office of Inventory Control sends property tags to departments for each piece of assigned inventoried property; departments must then ensure that the property tags are then placed on all inventoried property. Departments are also required to prepare an accurate annual inventory of their equipment and computers and return those inventories to the office of Inventory Control in a timely manner. In addition, throughout the year it is the responsibility of departments to make any necessary adjustments to their inventory, which may include disposing of old, obsolete equipment through Surplus Property.  Departments are also responsible for maintaining accurate records on all non-inventoried property, i.e. all property not overseen by the office of Inventory Control.  Questions regarding inventory, tagging processes, account codes, disposals, ownership titles, equipment checkouts, donations, etc. should be directed to the office of Inventory Control.

4.1. University Equipment Inventory

The office of Inventory Control maintains the University Inventory System, a database containing information on each item of property valued over $5000 and certain computer items such as laptops, desktop workstations, and tablets. The following information is maintained on the inventory database for each item of equipment:

  • MTU identification number (per property tag)
  • name or description of item
  • manufacturer, model number, and serial number
  • reference number, index number used for purchase, and fund code
  • department name and location where equipment is assigned
  • acquisition and assigned date to current department (if different)
  • cost
  • availability code (available for use elsewhere, used in the current department, surplus, not usable in current condition, or available for shared use)
  • government code (designates government-owned equipment)
  • source of acquisition
  • disposition record


The office of Inventory Control forwards to the department a report identifying specific item(s) as having been recently acquired by the department. Property tags are included with the report and the department is responsible for placing the tags on the item(s) in a location that is easily identifiable. The report must be completed by the department and returned to the office of Inventory Control within thirty (30) days after receipt of the report. The report will supply them with required information, such as location of equipment and serial numbers that will assist in maintaining accurate inventory records.

4.2. Physical Inventories

Applicable Northern Cyprus State Law requires the Mesarya Technical University to conduct a physical inventory of all property valued over $5000 annually. The annual physical inventory also provides departments with an accurate inventory of property assigned to the department.

4.2.1. Each year, the office of Inventory Control distributes to departments a listing of the department’s equipment and computers, as currently reflected on the University inventory.  Instructions, a form for identifying governmental property on loan to the University, and a Certification Statement are also distributed.  The Asset Adjustment form and others are also provided online at the Inventory Control website.

4.2.2. Department administrators are responsible for completing a physical inventory and returning all forms to the office of Inventory Control by the specified deadline. The department should retain copies of inventory documents. Physical Inventory of University Art and Library Collections

The units maintaining the University’s art and library collections have established appropriate internal procedures for inventorying and documenting their holdings, and are exempt from the University’s annual physical inventory requirement.  However, the units maintaining the art and library collections should notify the office of Inventory Control of additions and deletions ot the collections as part of the University’s annual inventory process.

4.2.3. The office of Inventory Control uses the certified inventories to make adjustments and corrections to the inventory.

4.3. Adjustments to Inventory

Changes in a department’s inventory should be reported to the office of Inventory Control as they occur throughout the year. The Asset Adjustment form or the Request for Disposal of Surplus Property form is used to report additions to or deletions from the department’s inventory. The Asset Adjustment form may also be used to request that property be tagged.

4.4. Assistance from the Office of Inventory Control

Departments may request assistance from the office of Inventory Control to affix the property tags and complete the report for a fee. A representative will come to the department acquiring the property, inspect the equipment, affix property tags, and record all identifying information. If a department requests assistance, or is unable for any reason to complete their annual physical inventory or to complete tagging of newly acquired assets, the required inventory and tagging will be completed by the office of Inventory Control and the department will be invoiced at the current rate per hour.

  1. Disposition of Property

When an item of property is no longer useful to a department, it may be transferred to another University department, traded in on new equipment, or disposed of through the University Surplus Property Department. The department that is transferring, trading in, or disposing of the property is responsible for completing an Asset Adjustment form or the Request for Disposal of Surplus Property form and submitting it to the appropriate office.

5.1. Interdepartmental Transfer of Property

When equipment is transferred between University departments, no change is made in the recorded value of the equipment. The department transferring the equipment must report the transfer to the office of Inventory Control on an Asset Adjustment form.

5.2. Transfer of Assets to another Institution

Equipment purchased with funds from contracts and grants administered by the University legally belong to the Mesarya Technical University. If a principal investigator transfers to another institution, in general, research grants will transfer with the principal investigator. However, contracts and grants for public service or training projects will usually remain at the University. Guidelines within the contract or grant will specify the procedure to follow if the assets are to transfer with the grant. Any equipment not officially transferred with the grant remains with the University.

5.3. Trading In Property

If a department wishes to trade in an item of property on the purchase of a new item, the department should contact the University Purchasing Department for approval. The Purchase Requisition should identify the item to be traded in, including a full description, manufacturer, serial number, and University identification number (per property tag). The department trading in the property must send a Request for Deletion of Assets form to the office of Inventory Control.

5.4. Cannibalization of Equipment

When an item can no longer be used for the purpose for which it was acquired or cannot be economically repaired and its components or parts are usable in a like item of equipment it may be desirable and advantageous to cannibalize (dismantle) an item of property. After cannibalization, the inventory control tag must be turned in to the office of Inventory Control with a completed Request for Deletion of Assets form. Components that are not used should be sent to the Surplus Property Department.

5.5. Works of Art, Historical Treasures, and Special Collections

Any funds received from the sale of works of art, historical treasures, or special collections must be used in accordance with the collection’s accessioning and deaccessioning policies, UAP 6410 (“Museums and Collections”), and other professional standards. In general as these collections are held for public exhibition, education, or research in furtherance of public service rather than financial gain, the proceeds will be used to further these goals and objectives.

5.6 Government Property

If the government equipment is no longer being used, the department must contact the office of Inventory Control.

5.7. Disposal of Surplus or Obsolete Property

Property to be disposed of (not traded in on new equipment or transferred to another University department) must be sent to the Surplus Property Department. A department that has property that is not being used should contact the Surplus Property Department. The department should complete and submit the Request for Disposal of Surplus Property form. For more information refer to UAP 4610 (“Acquisition and Disposition of MTU Surplus Equipment”).

 5.8. Loan of Equipment to a Non-University Entity

All requests to loan University property to a non-University entity must be submitted for approval to either the University Associate ViceRector for Financial Services or the HSC Financial Services Division. The request should describe the property in detail and include a statement justifying the proposed loan of the property.

5.9. Hazardous Materials

If hazardous or dangerous materials are to be sold after use, SRS must be consulted Ministry of Finance.

  1. Related Links

UAP 1030 (“Gifts to the University”)

UAP 4610 (“Acquisition and Disposition of MTU Surplus Equipment”)

UAP 6150 (“Casualty and Liability Insurance Claims”)

Asset Adjustment Form

Request for Disposal of Surplus Property Form

Request for Deletion of Assets Form

Checklist for Donations of Equipment Form


– Policy 7730: Taking University Property Off Campus

Date Originally Issued: October 21, 2019

Authorized by RPM 7.9 (“Property Management”)

Process Owners: University Controller and HSC Senior Executive Officer for Finance and Administration


  1. General

Occasionally, in the performance of job duties, faculty or staff members may need to use University property at their homes or at another off campus location. Deans, directors, and department heads are responsible for the control of off campus use of equipment. University property taken off campus must be used only for University business. The property must be returned to its campus location as soon as the off campus work is completed.

The policies and procedures contained herein apply to all University property to be taken off campus. Property taken off campus must have a MTU Identification Number (property tag) affixed to the property. Tags are provided by the University office of Inventory Control.

  1. Responsibility for Property Taken Off Campus

While the property is off campus, it is in the care and custody of the employee using it. That employee is responsible for the security of the property, and its appropriate use and maintenance. The employee must take any other measures necessary to ensure the security of the property. If an employee is negligent in the care and custody of University equipment, the employee will be financially responsible for any resulting losses.

  1. Checking Out Property

University property not assigned to a departmental location must be recorded on an Employee Equipment Checkout form before taking it to an off campus location. If property is taken off campus for a period of more than one year, a new Employee Checkout Form should be prepared at the time of the department’s annual inventory. This form is used both to authorize and record the off campus use of University property. The following information is required:

  • Identification of the employee to be using the property off campus.
  • Off campus location of equipment.
  • Justification for taking the property off campus.
  • Complete description of the item(s) to be taken off campus.
  • Description of the condition of the property at date of check-out.

Approval of the department’s dean, director, or department head is required. In the case where the employee taking the equipment off campus is the dean, director, or department head, the person who is in a position of authority over that employee must approve and sign the Employee Equipment Checkout form. When the property is returned to campus, the responsible administrator should complete the appropriate section of the form.


  1. Loss or Theft of University Property While Off Campus

Refer to UAP 6150 (“Casualty and Liability Insurance and Claims”) for information on applicable policies and procedures if University property is lost or stolen while at an off campus location.

  1. Separation of Employment

To protect both the employee and the University, and to maintain official records to determine if University property has been returned from an off campus location, the Separation Check-Off List for Staff Employees form must be completed. For a copy of this form, refer to UAP 3225 (“Separation of Employment”).


5.1. Emeriti Faculty

Emeriti faculty are entitled to full computer privileges under Faculty Handbook Policy C305, which may include checking out computers for use off campus.

  1. Related Links

Employee Equipment Checkout Form

UAP 6150 (“Casualty and Liability Insurance and Claims”)

UAP 3225 (“Separation of Employment”)

Faculty Handbook Policy C305


– Policy 7780: Use of University Vehicles

Date Originally Issued: October 2019

Authorized by RPM 7.9 (“Property Management”)

Process Owner:  Director, Physical Plant Department

  1. General

University vehicles may be used for only University related business, and generally are provided for trips only when the driver is a University employee.  In certain circumstances, students, contractors, and community members may be granted permission to drive University vehicles.  Passengers are limited to University employees, students participating in authorized trips, and invited guests engaged in University related activities.

When not in use, a University vehicle must be secured and legally parked near the department or work site of the user to whom it is assigned. Personal use of University vehicles is prohibited. Transportation between the University and the driver’s residence is normally prohibited, even if the driver is required to return to the campus to perform his or her job outside of regular business hours. If a driver needs a vehicle to attend an out-of-town meeting, the driver may take the vehicle home to facilitate an early departure, but no personal use of the vehicle is allowed. In special circumstances, when job duties warrant, a vehicle may be provided to an employee as a condition of employment. All such employment agreements must specify the terms and conditions for the use of the vehicle and must have advance written approval by the Rector.

This policy states rules regarding the use of University vehicles, which include any motorized (electric, gas, or diesel powered) vehicle operated on roadways. These rules are based on state and governmental regulations, University policies, and the “The Right Way” brochure, mentioned in Sec. 10. herein.

  1. University Vehicles


2.1. Rental Vehicles

The University maintains a small number of passenger vans for short term use by the University community.

Only University employees may drive the University vehicles that are available for rental.

2.2. Vehicles Purchased by and Leased or Donated to Departments

Departments may purchase vehicles for departmental use with funds from contracts, grants, or other funding sources subject to the Applicable Northern Cyprus State Purchasing Act, University policies, and contract or grant restrictions. All main campus, Health Sciencescentre, and MTU Hospital vehicles purchased by and leased or donated to a department must be checked in through the Automotivecentre. Purchase orders must specify to the vendor that the vehicle is to be shipped directly to the Automotivecentre. This is critical for inventory accuracy, placement of MTU vehicle decals, safety inspection, and insurance. MTU branch campuses must notify the Automotivecentre when vehicles are purchased by and leased or donated to the campuses as soon as they are acquired.  New vehicles with the capacity to carry more than ten (10) people that are purchased to primarily transport children between K-12 must meet all of the minimum governmental safety requirements applicable to school buses.

2.2.1. Insurance Coverage

Departments will be charged a monthly fee that includes the cost of liability, comprehensive, and collision insurance. Comprehensive and collision coverage is subject to a $2,500 deductible.  The insurance coverage extends to the use of University vehicles in other countries.If traveling to out of country in a University vehicle, contact Safety and Risk Services before leaving so that the vehicle can be added to the North Cyprus Auto Liability Policy that the State Risk Management Department maintains for all state-owned vehicles.

2.2.2. Maintenance, Repairs, and Testing Requirements

The department is responsible for the costs of operating, maintaining, and repairing the vehicle, as well as replacement costs of vehicle parts.

Mora campus departments should have all maintenance, repair work, and emissions testing done by the Automotive centre. If emergency maintenance or repair work is performed elsewhere, the service records must be forwarded to the Automotive centre. Branch campuses and off-site locations must have all non-emergency repairs pre-authorized by the MTU Automotive centre. Maintenance and repair work service records must be forwarded to the MTU Automotive centre on a timely basis.

The University department, faculty, or staff member in charge of the trip shall make all reasonable efforts to prevent misuse of the vehicle, ensure the safety of the passengers and the care of the vehicle, and return the vehicle in a satisfactory state of repair. Abuse of any University vehicle will be justification for refusal to permit the use of vehicles in the future.

2.2.3. Colour

University vehicles must be white. Vehicles acquired by the University subsequent to the effective date of this policy shall comply with this colour requirement. Vehicles donated to the University do not need to be repainted; however, when the vehicle’s paint requires refinishing it must be painted white.

2.2.4. Identification

All University vehicles must be numbered with two (2)-inch vinyl numbers, and must have a Mesarya Technical University decal or a Mesarya Technical University department-specific decal (approved in accordance with UAP 1010 (“University External Graphic Identification Standards”).  Branch campuses must notify the Automotivecentre when a vehicle needs to be assigned a number. Decal, stickers, signs, or other markings other than official University markings are prohibited on any University vehicle.

  1. MTU Fleet Cards

MTU Fleet (fuel) Cards are assigned to University vehicles and may be used only for gas, oil, car washes, or emergency repairs.

3.1 Rental of University Vehicles

MTU employees who rent a University vehicle from the Automotive centre will be provided with a Fleet Card for their use while driving the vehicle.  The driver is personally responsible for proper use of the card.  When returning the vehicle, the driver must return the card and all credit card receipts to the Automotive centre.

3.2. Vehicles Purchased By or Leased or Donated to Departments

Drivers of University vehicles purchased by or leased or loaned to a department may use the MTU Fleet Card assigned to the vehicle.  Fleet Cards are issued by the University Purchasing Department and may be recalled by the Purchasing Department if drivers do not comply with this policy.  Drivers must forward copies of their credit card receipts for authorized automotive purchases to the individuals in their departments who are responsible for administering the Fleet Cards.  This must be done in a timely manner for account reconciliation purposes.  Contact the Purchasing Department with any questions or concerns about the card.

  1. Licensing and Training Requirements


4.1. Vehicle License

University vehicles are state owned. All motorized vehicles equipped for road or highway travel, boats, and trailers must be licensed in accordance with state law. Vehicle licenses are processed by the University Property Accounting Department.

4.2. Driver’s License and Safety Training

Northern Cyprus residents who drive University vehicles are required to have a current Northern Cyprus driver’s license, and certification that they have completed the National Safety Council Defensive Driving Course (NSCDDC).  The NSCDDC Certification of Completion is used as a University vehicle operator permit, and the certification must be renewed every five (5) years.  The NSCDDC will be offered to non-MTU employees and students (including contractors, community members, retirees, and spouses) provided they pay for the cost of the course.  In the case of contractors and community members, it may be appropriate in certain instances for departments to cover the cost of the NSCDDC.

Safety and Risk Services will check the driving records of all drivers requesting to drive University vehicles.

An out-of-state license may be used in place of a Northern Cyprus driver’s license only if the driver is not a Applicable Northern Cyprus resident and provides certification from the state that issued the license that the license is valid and current.  The department or the out-of-state licensee bears the cost of obtaining the certification.  International driver’s licenses will not be accepted.

  1. Non-Employee Drivers

Non-employee drivers (MTU students and contractors, and partnering community members) may be authorized to drive University vehicles that have been purchased and leased or donated to departments.  Non-employee drivers are not authorized to drive the University’s rental vehicles.  In order to be authorized to drive, non-employees must meet the additional requirements noted below, as well as the general requirements of this policy for drivers of University vehicles, such as possessing a valid driver’s license and taking the NSCDDC.

  • Students may drive University vehicles provided they have a departmental sponsor and written authorization from the applicable dean, director, or department head on file in the department. The department must send a copy of this written authorization to the Automotive centre before the student will be allowed to drive a University vehicle.
  • Contractors may drive University vehicles provided they are: (a) authorized in writing to drive by their University contract manager, (b) on official MTU business, and (c) working under a contract that provides for driving.
  • Community members who are partnering with the University on clinical or research matters may be authorized to drive University vehicles provided they: (a) have a department sponsor and written authorization from the applicable dean, director, or department head on file in the department, and (b) only drive when they are on official MTU business.  The department must send a copy of this written authorization to the Automotive centre before the community member will be allowed to drive a University vehicle.


  1. Responsibilities

Drivers are responsible for having an accident report form and the documents described in Sec. 4.2. herein in their possession while driving a University vehicle.

Department heads are responsible for developing and implementing procedures to ensure that all drivers within their departments who are required or authorized to operate University vehicles have valid driver’s licenses and have completed the NSCDDC (see Sec. 4.2).  It is also department heads’ responsibility to make sure that vehicle operators are trained in proper accident reporting as described in Sec. 7.

  1. Accidents

If drivers are involved in an accident while driving a University vehicle, their Ministry of Finance concern should be for the safety of passengers or pedestrians who might be injured.  Drivers should seek Ministry of Finance aid and, if appropriate, an ambulance should be called for transporting injured parties to the hospital.

The following procedures should be followed in the event of an accident involving a University vehicle:

  • If you are on campus, notify Campus Police at 152 immediately.
  • If you are off campus, notify the local police.
  • If the vehicle needs to be towed, call the Automotive centre at 160 . If after hours, call Campus Police.
  • Notify your supervisor or manager of any and all accidents.
  • Arrange to receive a copy of the accident report filled out by the police authorities.
  • Fill out an Automobile/Equipment Accident Report form and submit it to Safety and Risk Services. For additional information and a copy of the Automobile/Equipment Accident Report Form refer to UAP 6150 (“Casualty and Liability Insurance and Claims”).

Northern Cyprus Tort Claims Act coverage is provided for authorized drivers operating University vehicles on official business. However, in accordance with MTU laws and regulations the University reserves the right to recover from the driver the amount expended to provide a defence and pay a settlement or final judgment, if it is shown that, while acting within the scope of duty, the driver acted fraudulently or with actual intentional malice causing bodily injury, wrongful death, or property damage.  If drivers use their personal vehicles on University business, their personal insurance coverage is primary.

  1. Loss of Valid License

Drivers with suspended, revoked, or expired licenses are prohibited from driving a University vehicle. Drivers must notify their supervisors immediately if their licenses are suspended, revoked, expired, or significantly changed in any way. If driving is a function of the employee’s job, loss of license could mean reassignment, disciplinary action, or discharge.

  1. Safety

9.1. Requirements

Drivers of University vehicles are required to observe all city and state traffic regulations and are personally responsible for penalties incurred for violations thereof.

Drivers must notify their supervisors, or for contractors their contract managers, no later than the next working day if they are charged or cited with a civil or criminal violation while driving a University vehicle.

In accordance with Applicable Northern Cyprus state law, as well as good safety practice, all drivers and passengers using University vehicles are required to use seat belts whenever the vehicle is in use. Drivers are responsible for ensuring that all passengers have their seat belts secured prior to the vehicle moving.

9.2. Prohibitions

Providing transportation to hitchhikers is prohibited.

Cellular phone use, including text messaging, is prohibited while driving a University vehicle. Drivers should pull off the road and park before making or answering a call, and before sending, reading, or responding to a text message.

Smoking is not permitted in any University vehicle.

Transporting drugs and alcohol in a University vehicle is prohibited unless the alcohol is being transported for an official MTU catered event.

Drivers shall not drive University vehicles while engaged in activities that adversely affect their driving.

  1. Procedures

Specific procedures (including on repairing vehicles, purchasing gasoline, emergencies, and accidents) can be found in the “The Right Way” brochure.  A copy should be in the glove box of each vehicle.  The brochure is also available through the Automotive centre. Failure to read the brochure could result in a serious violation of state regulations on the use of state-owned vehicles.

  1. Exceptions

Any exceptions to this policy must be approved by the Executive ViceRector for Administration.