B(4)
ROBINSON
COLLEGE OF BUSINESS
GEORGIA STATE UNIVERSITY FOUNDATION, INC.
EXPENDITURE POLICY
General Statement of Fund Administration
The Georgia State
University Foundation, Inc. is a charitable corporation 501 (c) (3) organization)
which receives and administers private contributions made in support of Georgia
State University. The purpose of the GSU Foundation is to promote in various
ways the cause of higher education, to expand educational opportunities, to
acquire and administer funds which shall be devoted to such purposes. Contributions
to the Foundation are acknowledged as tax deductible to donors under the Internal
Revenue Code.
All expenditures of Foundation funds must be consistent with the intention of the donor and mission of the University. Funds received are classified according to two general groups for administrative purposes, each of which requires different administrative processes for approval of expenditures. However, the general policies apply for all disbursements, regardless of additional restrictions placed upon donor-restricted funds.
Restricted Funds: Any restriction imposed by the donor on the use of funds will be strictly observed. Questions concerning the specific application of a donor-imposed restriction will be resolved by consultation with the donor where possible. If the donor cannot be consulted, questions will be resolved by the officers of the Foundation.
Restricted funds include funds received for Endowments, Endowed Scholarships and Non-Endowed Scholarships, and special-purpose funds for projects such as Reading Recovery, and the Language Research Center.
Restricted funds also include funds received for designated programs of the University such as the College of Law or the Department of Chemistry. Some of these funds are, however, not restricted for further, more specific purposes, and may be used at the discretion of the Dean or Vice President to support or enhance the strategic mission of the university within the general guidelines of the Foundation (see GENERAL GUIDELINES).
Unrestricted Funds: Expenditures from unrestricted funds are made through an annual Administrative Budget approved by the Board of Trustees and must be used for the purpose specified in the approved budget. Budget requests are made one time during a fiscal year and must be submitted by March 15 to the President of the Foundation by a Vice President or the President of the University.
General Guidelines for Fund Disbursements
All expenditures must be made with great respect for donor expectations and in support of the mission of the University. To that end, the Foundation has approved GENERAL GUIDELINES which serve to guide the use of funds donated to the Foundation. Donor restrictions may prohibit certain disbursements entirely, and appropriate University members should be thoroughly familiar with the contents and interpretations of written agreements governing gifts.
Only officers of the Foundation have the authority to create a liability of the Foundation. University members may not authorize vendors to charge purchases to the Foundation without prior approval.
A reimbursement will be approved if it falls clearly within the guidelines of this policy. Advanced approval is encouraged to ensure that reimbursement is obtained if it is unclear that a request would be reimbursable. All reimbursements must be requested within 45 days of a purchase. In accordance with Internal Revenue Service guidelines, no reimbursements will be made if requested more than 60 days after the purchase.
The purpose of the Foundation is to receive gifts. The Foundation is not the appropriate entity to receive "fees" for activities and programs. Therefore accounts for such activities should be set up in the University. However, gifts of support made to the Foundation can be used to reimburse such accounts where fees are not sufficient to cover expenses.
Guidelines for specific types of expenditures are as follows:
Consultants: Payments to outside consultants or consulting firms are permitted. Payments to an individual may not be made as a consulting fee where that individual should be hired as a part-time or temporary employee.
Contributions: No Foundation funds may be donated to organizations external to the University except where a contribution is made in lieu of flowers for funeral services or in honor of an individual important to the University.
Dues/Membership Fees: Dues and fees for institutional memberships in organizations related to University affairs should be paid from State funds when possible. Dues and fees for individual membership in University related or professional organizations may be paid from Foundation funds.
Dues and membership fees for individual membership in civic service or private clubs may be paid from Foundation funds where such memberships are deemed necessary for business purposes. However, where any portion of those facilities are used for personal activities, a pro-rata share of the dues or membership fees will be reported as income to the employee in compliance with IRS requirements. No dues or membership fees for private country clubs or similar organizations may be paid from Foundation funds.
Certification fees or fees for licenses to practice a profession related to the University or Foundation may be paid upon approval of the Dean or Vice President.
Employee Incentives/Awards: Employee incentives and awards are permitted, as long as they meet legitimate goals for providing employee incentives and are made available in compliance with IRS requirements. Incentive programs are those which occur over a period of time to provide incentives for a group of employees and establish procedures for measurable criteria and monitoring. Incidental employee recognition awards are non-recurring and are designed to reward employees for exceptional performance in one-time or unusual circumstances.
Incentives/awards activities must receive prior approval from the President of the GSU Foundation and must address procedures for ensuring adequate IRS reporting. All cash awards must be made through the University payroll as a Salary Supplement and charged to a sponsored Project (see "Personal Services"). Non-cash awards will be reported on the employee's W-2 as required by the Internal Revenue Service for any items which exceed $25 in value (See also "Gifts").
Employee Meals: Meals for employees may be paid from Foundation funds in the following circumstances:
Only reasonable amounts will be reimbursed. Expenditures above an amount which
is reasonable, taking into consideration location and alternate available facilities,
will require individual approval by the appropriate Vice President or Provost.
Requests for reimbursement must be accompanied by a receipt for the meal (date,
amount and place of the meal must be included). The request must include a full
explanation of the purpose of the meal and the names and affiliation of the
attendees (descriptions may be generalized for groups larger than twelve participants).
Unless extenuating circumstances dictate otherwise, reimbursement for lunch
will be limited to $25 per person and $50 per person for dinner.
Entertainment: (see "Employee Meals", "Spouse Meals", and "Travel") Normally, reimbursement for entertainment will be limited to meals, refreshments and travel. Other entertainment reimbursement must be approved IN ADVANCE by the appropriate Vice President, Provost and the Foundation President.
Flowers: Flowers may be purchased for the following:
The requests for reimbursement must be fully documented, including the identity of the meeting, event or individual and the relationship to the University.
Fund Raising Activities: Alumni and Public Relations expenses incurred in the course of organizing and conducting activities for the purpose of raising funds or creating "good will" for the University may be paid. Expenses may include meals incurred in the course of official duty, refreshments, entertainment and travel subject to the provisions of sections related thereto. No funds may be used to specifically benefit a particular donor except for those permitted for recognition purposes (see "Gifts").
Gifts: Gifts to employees are allowable only under approved "Employee Incentives/Awards" (above) or in the case of an employee retirement, (the purchase of an item of less than $150), not cash. Special IRS rules apply for retirement gifts, although generally such gifts are not taxable compensation to the employee. Gifts for employee appreciation and special occasions are not permitted.
Gifts to donors and "friends" of the University (including donors and friends who are also employees) are limited to fund raising/cultivation objectives. The cost for these items should be reasonable.
Guest/Host Expenses: Foundation funds may be used to bring official guests of the University to campus. Costs of transportation, lodging, meals and necessary miscellaneous expenses are included. University employees, students or relatives may not be considered as an official guest of the University for the purpose of expense reimbursement, although they may act in the capacity of University host (see below).
University faculty or staff, acting in official capacity as a University host, may be reimbursed for expenses incurred within reason. Allowable expenses for hosting an official guest may include employee and employee spouse meals, entertainment at home, and miscellaneous expenses associated with the requirement as host.
Requests for reimbursement must include the amount, date, and place of the expenditure. All employees and guests must be identified and the reason for the visit and hosting responsibilities explained.
Holiday Greeting Cards: Reasonable expenditures for greetings to University donors, friends and alumni are authorized.
Moving Expenses: Payment of a reasonable amount of expenses for moving an employee of the University to Atlanta is permissible. For use of Unrestricted Funds, these expenditures must be specifically approved in the budget approved by the Board of Trustees. For use of funds restricted to a specific College, the Dean of that College has the responsibility for permitting the use of funds for moving reimbursements. Moving expense reimbursements must be reported as additional compensation on the employee's W-2 as required by the Internal Revenue Service.
Office Furniture/Equipment: In general, expenditures for office furniture and equipment should be made from State funds. However, the Foundation may approve expenditures for such items in unusual circumstances. Requests must receive advance approval and must include an explanation for the request.
Office furniture and equipment will be transferred immediately to Georgia State University. Requests must contain full documentation of the item and provide the name of a contact person for Property Control.
Office Decorations: In general, expenditures for these items should be limited. The category includes plants, flowers, pictures, lamps and holiday decorations. Large, repeated or extra-ordinary requests for reimbursements for these items will not be approved.
Office Refreshments: It is expected that University offices will be personally responsible for office coffee, bottled water and other similar routine refreshments. Foundation funds will only be used to purchase coffee, bottled water, etc. for offices with extensive contact with the public.
Personal Services: All personal service expenditures must be made through employee payroll and charged to a sponsored project. This includes expenditures for salaries (full time, part-time and temporary), salary supplements and extra compensation.
Public Relations Activities: Activities include dinners and community affairs organized and presented by external, non-profit organizations. Admission charges for employees officially representing the University at public functions may be paid from Foundation funds. The request for reimbursement must be properly documented, including a complete, detailed description which conveys the purpose and benefit to the University.
No contributions to political candidates are permissible. Expenditures for legislative advocacy must be limited as permitted under IRS guidelines (details to be furnished) and approved in advance by the Vice President for External Affairs.
Refreshments: Generally expenses for refreshments for university-related functions are appropriate expenditures where they are:
The requests for reimbursement must be properly documented, including a complete
detailed description of the activity and the persons or groups attending the
meeting or event.
Spouse Meals: The cost of including an employee spouse in entertaining official guests, recruiting faculty and staff, and in fund raising or public relations activities may be reimbursed from Foundation funds where the attendance of the spouse is necessary to the business purpose of the activity.
Student Awards, Scholarships, and Fellowships: Student awards, scholarships, and fellowships must be paid to students via Student Accounts. No checks will be made payable directly to a student. If permitted by the agreement with the donor, awards, scholarships, and fellowships in excess of tuition and fees which are intended to cover a student's living expenses may be disbursed to the student by Student Accounts. Such arrangements require the direct request for "Disbursement of Credit Balances" submitted at the time of the award, scholarships or fellowship disbursement request and must be approved by the Foundation President.
Expenditures for supplies should include only those items needed on a nonrecurring basis or cannot be paid with state funds. Items needed on a recurring basis should be funded from State resources.
Employees will be reimbursed for all reasonable travel expenses on an actual expense basis. Travel expenditures should be reimbursed from State funds where possible.
Air Travel - Air travel must be by coach class and discount fares should be sought.
Automobiles - For the use of personal automobiles, employees will be reimbursed at the same rate per mile as that used by the University.
Food - Employee shall be reimbursed for meal expenses at state approved levels while traveling "away from home" on business. Meals during daily travel (which is not "overnight") are considered the responsibility of the individual. Meals with prospects, donors, volunteers, and other business related individuals (not colleagues) are considered entertainment.
Other - Not all expenses are reimbursable. The following are examples of personal expenditures which will not be reimbursed even though they may be incurred while on official University business: laundry, pay movies, baby-sitting expenses, formal clothing, and other items that are strictly personal.
Overnight Accommodations - Employees are encouraged to stay in reasonably priced motels or hotels and government or corporate rates must be obtained where possible.
Telephone Calls - Employees may make one personal call per overnight of travel. Telephone credit cards should be used for all long distance business calls while traveling including any long distance call made from hotel or motel rooms.
Unallowable Expenses: The following expenses will not be reimbursed from
Foundation funds:
(Approved: November 6, 1996)