¾Ã²ÝÈȾòÝÊÓƵ

Scope

This policy covers the purchase of items that are incidental to the mission of the ¾Ã²ÝÈȾòÝÊÓƵ and can be paid for with ¾Ã²ÝÈȾòÝÊÓƵ Administered Funds.

Reason for Policy

To ensure that appropriate approval and documented justification is provided for incidental expenditures purchased with ¾Ã²ÝÈȾòÝÊÓƵ Administered Funds. Each campus may institute more restrictive policies regarding unallowable expenditures than those that appear below.

Policy Statement

When there is a documented business reason, expenditures of ¾Ã²ÝÈȾòÝÊÓƵ administered funds can be made for items listed below with approval from the President, Vice President, Chancellor, Provost, Vice Chancellor, Hospital Chief Executive Officer, or designee, unless others are specified.

Each purchase must be a suitable expenditure for the funding source used and must be within the scope of any donor, agency, or other restrictions on the use of the funds, including grant restrictions.  

• Alcoholic Beverages
  • Related to the promotion of the interest of the ¾Ã²ÝÈȾòÝÊÓƵ. An attestation or written statement explaining that the expenditure benefits the ¾Ã²ÝÈȾòÝÊÓƵ must be shown on each transaction that request payment of, or reimbursement for, alcoholic beverages.

• Flowers
  • Purchased for official ¾Ã²ÝÈȾòÝÊÓƵ events or public relations activities for a legitimate business purpose.

• Personal Convenience Items
  • Used for public purpose in lunch rooms, common areas, or public areas.

• Holiday Decorations and Functions
  • Purchased decorations for commonly accessed public areas and exterior grounds only
  • Holiday parties or similar social events when there is a documented business purpose

• Greeting Cards
  • For external public relations purposes only (i.e. donors, community leaders, and friends of the ¾Ã²ÝÈȾòÝÊÓƵ)

• Recognition Events (limited basis)
  • Farewell or employment anniversary receptions for full and part-time employees who, retire, resign, or transfer internally, or have achieved a significant employment milestone. See Related Information for link to information regarding retirement gifts.
    • These receptions must have the approval of the Dean, Director, Department Chair, or an administrative superior
  • Student and/or community events are allowed if involvement has made a significant impact on the ¾Ã²ÝÈȾòÝÊÓƵ
  • Excludes personal related events such as birthdays, wedding anniversary, etc.

• Charitable Contributions or Events
  • Allowed only when it is in the best interests of the ¾Ã²ÝÈȾòÝÊÓƵ
  • Auxiliary enterprise operations may make non-monetary contributions when the operation determines there is a business benefit from doing so
  • Donations of equipment to outside organizations or to individuals are not allowed without the approval from Surplus Property
  • Political contributions are not allowed.

• Clothing
  • Provide clothing to personnel who have a business need for them

• Tickets to Events
  • Purchase of tickets or other items of value that will be given away as part of a program must be kept secure while in the possession of the ¾Ã²ÝÈȾòÝÊÓƵ.  Recipients of the tickets should be tracked with the event name, date of event, and date dispersed.

The justification must be documented, and receive appropriate approval. The request to be approved should state the date or time period of the expenditure(s), the estimated amount(s), and the justification. A copy of the approved request should be filed with the source documentations for the expenditure.

When a purchase or payment includes both a personal portion and a ¾Ã²ÝÈȾòÝÊÓƵ portion, the payment can be made through ¾Ã²ÝÈȾòÝÊÓƵ processes if the ¾Ã²ÝÈȾòÝÊÓƵ portion is more than 50% of the total cost and it is more efficient for the ¾Ã²ÝÈȾòÝÊÓƵ to process in this manner. The employee must reimburse the ¾Ã²ÝÈȾòÝÊÓƵ for the personal portion at the same time the ¾Ã²ÝÈȾòÝÊÓƵ portion is processed for payment.

Definitions

¾Ã²ÝÈȾòÝÊÓƵ Administered Funds - unrestricted or restricted funds held by the ¾Ã²ÝÈȾòÝÊÓƵ. 

Accountabilities

Departments:

• Obtain approvals for the purchase of incidental items
• Periodically review incidental purchases for adherence to policy
• Work with employees that have a split purchase between personal use and the ¾Ã²ÝÈȾòÝÊÓƵ to obtain reimbursement to the ¾Ã²ÝÈȾòÝÊÓƵ

Employees:

• Reimburse the ¾Ã²ÝÈȾòÝÊÓƵ for any incidental expenses in which a portion of the expense is for personal use

Additional Details

Forms

Related Information

Retirement gifts are addressed in Policy 22307 on Awards, Gifts & Prizes

History

Formerly Business Policy Manual 217 – Incidental Expenses (revised 8/1/2004)

Procedure