Financial Policies Training: The First Eight Effective: February 1, 2008 Revised: May 1, 2009, March 1 and May 17, 2010

Financial Policies Training:The First Eight

Effective: February 1, 2008 Revised: May 1, 2009, March 1 and May 17, 2010

Context and BackgroundGeneral Policy InformationThe First Eight Policies

Travel Expenses Meal ExpensesPurchasing Card ViolationsAlcohol PurchasesEmployee Recruiting ExpensesEntertainment Expenses Professional Memberships, Certification, Dues and Subscriptions Employee Reward, Recognition and Acknowledgement

Questions and Follow-up

Agenda

Context and BackgroundAudits

Policy Task Force Financial Policy Development Committee

Charge: Address audits, review existing policies and procedures, establish standard business practicesGoals: Cost containment, efficiency and accountability, compliance with government regulations

Internal Audit FindingsAmbiguous policiesInappropriate and excessive expendituresLack of receipts and documentation

ObjectivesConsistent format and language

Accessibility toPolicies, hot links, forms

University-wideOrganizational units may institute policies more, but not less, restrictive

Training and Resources

General Policy Information

Policy Format


Policies Resources

Web site: www.uc.edu/af/policies Policy questions e-mail: [email protected]

Frequently Asked Questions: www.uc.edu/af/policies/FAQ.html

http://www.uc.edu/af/policies

mailto:[email protected]

http://www.uc.edu/af/policies/FAQ.html

http://www.uc.edu/af/policies/FAQ.html


These PowerPoint slides are intended

for training purposes.

In the event of any discrepancy or

interpretation difference between

the policy and the slides, the policy

dictates.

Policy 2.1.6Travel Expenses


GeneralTraveler’s and supervisor’s responsibility to understand policy University may pay for/reimburse reasonable, authorized, and appropriately documented travel expendituresLimits – strictly enforcedTravel Expense Report – completed, approved and submitted w/in 30 calendar days of trip’s conclusion

Late submission may result in delay/denial of reimbursement, P-Card violation, disciplinary actionLate submission requires justification statement and approval by senior vice president, vice president or dean (Policy Exceptions Form)

http://www.uc.edu/af/documents/policies/polexcept.doc


AuthorizationOvernight travel

Pre-approval using Travel Authorization Form If employee or group travel – supervisor’s approvalIf non-employee (e.g., job candidate) – head of org unit approval

Same day travel (or within Cincinnati) No pre-approval butSubject to same reimbursement and documentation requirements

Travel Expense Report – completed and submitted within 30 calendar days of trip’s conclusion

Must be submitted and approved before payment/reimbursement

http://www.uc.edu/af/documents/policies/travauth0409.doc



Types of travelIncidentalSame dayOvernight travel (i.e., requires lodging for overnight stay)

DomesticIn-stateOut-of-stateInternationalGroup (e.g., team travel, study abroad, field trips) Recruiting/speakers/visitors (i.e., non-university individuals)

Spouse/family (related to employment recruitment)


International travel

General Umbrella policy under development; meanwhile use this oneWhere there is a U. S. State Department Travel Warning, university recommends against but doesn’t prohibitSEEK GUIDANCE from UC International (556-4402)Pre-approval using Travel Authorization FormTravel Expense Report – completed, approved and submitted within 30 calendar days of trip’s conclusion

http://travel.state.gov/travel/cis_pa_tw/tw/tw_1764.html



International travel (cont.)

Carriers Lowest available coach/economy consistent with schedulingFirst or business class only if the following three conditions are met

Medical condition (indicated by physician)Documented & approved by University Health ServicesPre-approved by traveler’s supervisor (Policy Pre-Approval Form)

(new) Frequent flier miles can be used to upgrade overseas flightsContact grants administrator for guidelines and restrictions for travel on sponsored projects

For certain grants – must use U.S. Flag air carrier; check with the grant administrator

Lodging – reasonable and documented

http://www.uc.edu/af/documents/policies/polpreapp0409.doc


International travel (cont.)

Meals Current federal per diem rate for the foreign cityNeed not be pro-rated

Car rentalPurchase all local, statutory, and optional insurance coveragesDocumentation required for reimbursement

Ground TransportationExamples: shuttle (airport/hotel), bus, taxi, tram, train, parkingUse care to obtain lowest costObtain original receipts if possible

Currency UC employees

Use rate of exchange at the time of departure from foreign country for non-credit card expenditures Indicate exchange rate on Travel Expense Report

International residents may be paid in the currency of their origin country

http://www.gsa.gov/perdiem

http://www.oanda.com/convert/classic


Domestic travel

General Transportation mode – safe, cost-effective, efficientMake arrangements early (ideally 30 days in advance)

Modes of transportation Common carrierPrivately-owned aircraftCharter flightPersonally-owned vehicleUniversity vehicleRental vehicleGround transportation


Domestic travel - modes of transportation

Common carrierLowest available coach/economy consistent with schedulingFirst or business class only if the following three conditions are met

Medical condition (indicated by physician)Documented & approved by University Health ServicesPre-approved by traveler’s supervisor (Policy Pre-Approval Form)

Frequent flier miles can be used to upgrade overseas flightsContact grants administrator for guidelines and restrictions for travel on sponsored projectsVouchers/credits for unused tickets

Must be used for university business




Domestic travel - modes of transportation

Privately-owned aircraftPre-approved by supervisor (Policy Pre-Approval Form)

Air travel is justified and commercial service not availableBetween departure/destination points or

Can’t accommodate necessary time schedules

Must meet policy’s insurance requirements (see Travel Expenses policy for specifics)

Reimbursed at commercial coach fare rate from an authorized source (e.g., University Authorized Travel Agency)


http://www.uc.edu/af/documents/policies/travelexp0509.pdf

http://www.uc.edu/af/documents/finserv/variant.pdf


Domestic travel - modes of transportation (cont.)

Charter flightsPre-approved by president or appropriate senior vice president (Policy Pre-Approval Form)

Provide a list of all travelers

Air travel is justified and commercial service not availableBetween departure/destination points or

Can’t accommodate necessary time schedules

Transportation of non-essential individualsAt no charge is prohibited

At a fair fee if extra seats






Personally-owned vehicleMileage is reimbursed (Variant Expense Rate Table) Should not exceed cost of least expensive airfare or rental car

Consider additional costs when comparing

Signature on Travel Authorization Form certifies:Valid US or Canadian driver’s licenseProper insurance coverage (see Travel Expenses policy for specifics)

University vehiclesNo mileage reimbursementReimbursed for

Incurred service expenses necessary for safe/efficient operationWith original, itemized receipts






Rental vehicleFor individual: intermediate size or lowest rateFor groups: full size or van; all authorized drivers must be listedReimbursed

Rental charge and actual fuel expensesSubmit original itemized receipt with Travel Expense Report

Not reimbursedMileageInsurance or additional coverage; print letter certifying university insurance policy and submit to rental agency

Use of rental vehicle to make (not rental while at a destination) the trip: may be used when the overall cost is less than the cost of other means of transportation

http://www.uc.edu/af/documents/policies/inscovltr.doc



Ground TransportationExamples: shuttle (airport/hotel), bus, taxi, tram, train, parking

Use care to obtain lowest cost

Obtain original receipts are required if possible


LodgingReimbursed if pre-authorized overnight travel

HotelsReasonable, standard business room rate

If conference/convention – limited to that rate

Ask for discounts

Need itemized original receipts

Hotel gratuity may be reimbursed if reasonable and approved by supervisor

If paid by Purchasing CardItemize in Travel Expense Report (but indicate P-Card paid)

Not reimbursed

Keep original itemized receipt with P-Card log


Lodging (cont.)

Private residenceStandard university per person per day rate (Variant Expense Rate Table)

Include a statement acknowledging stay in Travel Expense Report

Extended stays (i.e., weekend travel to get lower fares)

Reimbursed for living expenses on extra days only if end result reduces total travel costs of trip



Meals

Reimbursed if pre-authorized overnight travel

AmountCurrent federal per diem for that city Gratuities are part of per diem; not > 20%No need to pro-rateIf paid by Purchasing Card

Itemize in Travel Expense Report (but indicate P-Card paid)Not reimbursedKeep original itemized receipt with P-Card log

For alcohol or entertainment expenses – see those policies

http://www.gsa.gov/perdiem


Pre-Payments on Travel

What and how?Common carrier transportation AND/OR registration fees

Preferred method is of pre-payment is a P-card

Alternative method: when using personal funds, traveler can optionally be reimbursed prior to the trip on a Travel Expense Report (A113) if desired

Include Travel Authorization Form if overnight

Include original receipts

The reimbursement prior to the trip must be reflected as a prepayment on the Travel Expense Report submitted following the trip

Registration fees (only)

Direct payment to the vendor: submit completed registration materials and an A114 to Accounts Payables. Include Travel Authorization Form if overnight travel.


Purchasing Card Payments (for travel)

Need travel P-Card authorizationMust adhere to

Limits of this policyP-Card limits (For amounts over P-Card limits, use personal card and seek reimbursement on Travel Expense Report)

Indicate P-Card amounts on Travel Expense Report; note that P-Card paid (prepaid)Keep original itemized P-Card receipts with P-Card log


Cash AdvancesOnly for group/team travel; not for individual travelExceptions: case-by-case basis by Treasurer’s OfficeNot to exceed 80% of projected costHow?

Responsible UC employee completes and sends Funds Reservation A114 and signed Travel Authorization Form to Accounts PayableResponsible person receives checkAny remaining cash advance balance – to be deposited with A-151 immediately upon trip conclusionWithin 30 calendar days, submit detailed and approved Travel Expense Report to Accounts Payable



Other travel related points:Overages

Personal fundsKnow what’s allowable

Reimbursed after* trip and approved Travel Expense Report submitted

Do not use to pay for travel expenses of “prospective” employees, students, guests

* airfare or registration fees may be reimbursed prior to trip with approved TER and Travel Authorization (if needed)


Other travel related points:Personal convenience expenses

Not reimbursed (e.g., haircuts, in-flight movies, hotel

pay-per-view, spa services)

Laundry/dry cleaning may be reimbursed if reasonable and during a stay of 7 days or more

Not reimbursed: passports, immunizations, visas when not required as condition of travel


Other travel related points: (cont.) Airline club memberships – not paid/reimbursed

Cancellations – costs incurred by failure to cancel travel reservations in a timely manner will not be reimbursed

Extended stays (i.e., vacation time added to trip)

Cost variance must be clearly defined

Personal expenses will not be reimbursed

Cost cannot exceed what trip would otherwise have cost university

University will not prepay personal expenses with intention of being repaid


Reporting and DocumentationExpenses must be fully documented

If per diem (or up to per diem) for overnight travel meals is claimed, no receipts required

Meals charged to a P-Card require original itemized receipts; (anything charged to a P-Card requires an original itemized receipt)

Supervisor must review Travel Expense Reports before approving


Rules and StepsOne (Final)Travel Expense Report (TER) per trip

(may be additional TER if reimbursed for common carrier transportation or registration fees prior to trip) If overnight, include Travel Authorization Form Filed within 30 calendar days of trip’s conclusion

After 30 calendar days requires approval from dean, vice president or senior vice president (Policy Exceptions Form)

Personal vehicle mileage - same day/incidental travel

Submit approved Travel Expense Report with a Mileage Log; within 30 days of travel; can bundle Calculate miles from point of departure to destination (new)

Mileage from home to primary work is not reimbursed


Q. How is mileage calculated for travel when using one's personal vehicle?

A. As part of policy revision effective 05/01/09, mileage for travel will be calculated from the point of departure to the destination point. The policy remains unchanged in the mileage between one's home and one's primary work site will not be reimbursed by the university. Notes: organizational units may have more restrictive policies.

An example of how the revision works:Mileage from home to primary work site:12 milesMileage from home to the airport: 38 milesMileage from primary work site to airport:16 milesWhen traveling for university business to the airport from my home, my reimbursable mileage, for this portion of the travel, is 38 miles (not 38 miles minus12 miles).When traveling for university business to the airport from my primary work site, my reimbursable mileage, for this portion of the travel, is 16 miles.

Another example of how the revision works:Mileage from home to primary work site: 9 milesMileage from home to Columbus: 100 milesMileage from primary work site to Columbus:112 milesWhen traveling for university business to Columbus from my home, the reimbursable mileage, for this portion of the travel, is 100 miles (not 100 miles minus 9 miles).When traveling for university business to Columbus from my primary work site, the reimbursable mileage, for this portion of the travel, is 112 miles.

A third example of how the revision works:Mileage from home to primary work site (main campus): 4 milesMileage from main campus to RWC: 13 milesMileage from RWC to home: 8 milesDuring the work day, I drive from my primary work site on main campus to RWC and back. Reimbursable mileage: 26 miles (13 miles each way).During the work day, I drive from my primary work site on main campus to RWC, and then drive home for the day. Reimbursable mileage: 21 miles (13 miles + 8 miles).I drive to RWC (not my primary work site) from home and remain there all day. I drive home from RWC. Reimbursable mileage: 16 miles (8 miles each way).I drive to RWC (not my primary work site) from home, and then drive to my primary work site on main campus. Reimbursable mileage: 21 miles (8 miles + 13 miles).


Rules and Steps (cont.)

Original Itemized ReceiptsIf not P-Card, must show proof of payment If lost, traveler’s responsibility to obtain duplicate from vendor and if not available by vendor, traveler to contact their card-issuing bank to provide oneNon P-Card receipts substantiate amount due to traveler

Purchasing CardKeep original itemized P-Card receipts with P-Card logItemize on Travel Expense Report but indicate that P-Card paidIf no amount is due traveler because ALL expenses are P-Card or prepaid

Completed Travel Expense Report should remain with traveler’s P-Card log, should contain Travel Authorization Form and be approved by the traveler’s supervisor


Reward ProgramsUniversity travelers may accrue frequent flyer miles for university-related travel

Per Ohio Ethics CommissionAccrued miles must be used for university-related business travel

Must be tracked separately


Suggested GL Accounts530500 Employee Travel & Training530501 Employee Training Registration & Fees530503 Employee In-State Travel530504 Employee Out-of-State Travel530505 Employee Foreign Travel530701 Non-Employee Travel530702 Team Travel


Tools to help:The Traveler’s Checklist provides a one-page summary of things to remember when traveling overnight.

Policy 2.1.4Meal Expenses


Four categoriesOvernight Travel MealsBusiness MealsUniversity FunctionsNon-university Functions

Overnight Travel MealsMeal expenses during a trip that involves lodging for an overnight staySee Travel Expenses Policy


Business MealsPrimary purpose: business discussion

Must include at least one non-university person whose presence is necessary

Properly documented (IRS Rules)

Time, date, place (whether on or off campus), attendees, business purpose

Must include clear business purpose

Covers only those individuals necessary


Business Meals (cont.)

AmountsCurrent federal per diem rate for that city

Gratuities are part of per diem; not > 20%

No need to pro-rate

If fundraising, see Entertainment Expenses Policy

Sponsored Projects – Contact your grant administrator for guidelines and restrictions


University FunctionsFood at seminars, retreats, workshops, orientations, other university functionsProperly documented

Include description of business purposeIf feasible, include list of attendees

Other functions where food/beverages may be provided

Board meetingsMeetings with external stakeholders or speakersActivities with volunteers or where a majority of participants are students


University Functions (cont.)

Are NOT food at gatherings of university employees on a daily or similar ongoing basis

May cover food for gatherings of university employees

On an occasional basis (i.e., no more than 4 times during a fiscal year per organizational unit)

Where the primary purpose of the gathering is a formal business discussion (e.g. a “working” breakfast/lunch/dinner particularly if personal time is used to conduct university business)


Non-University FunctionsCovers lunch/refreshments included in the registration fee for a conference, seminar or other meetingDoes not cover NON-overnight program where “lunch is on your own”

Policy exceptionsApproval by senior vice president, vice president, dean or their designee (Policy Exceptions Form)


ProcedureInclude any required documentation for overnight travel meals with approved Travel Expense Report or P-Card log; no receipts needed if claiming the per diem (or up to it); original itemized receipts required for meals charged to the P-cardInclude any required documentation and original itemized receipts for non-travel meals with an A-114 or P-Card logSuggested GL accounts:

5305xx range for overnight travel meals5304xx range for other meals

Policy 2.8.1Purchasing Card Violations

Policy 2.8.1Purchasing Card Violations

Cardholder ResponsibilityUse card responsibly

Use in manner consistent with university’s mission, ethical practices, laws, and policies

Keep current with Purchasing Card Policies and Procedures Manual

Policy 2.8.1 Purchasing Card Violations

Four Roles Cardholder

University employee whose name is on the card

Reviews and signs own statement

Accountable for all charges with that card

May be an Account Allocator for own account but can’t be a Card Verifier or Independent Reviewer for own account

Account AllocatorPerson who can allocate charges to a non-default account in UC Flex

May be used in conjunction with the other roles


Four Roles (cont.)

Card VerifierPerson who verifies validity of cardholder’s purchases and signs cardholder’s bank statement attesting to such

Independent ReviewerPerson within department to sample/test transactions for adequate documentation and appropriateness

Cardholder cannot be own Independent Reviewer

Independent Reviewer should NOT be a subordinate to cardholder whenever possible


Types of Violations

Abuse, misuse, negligenceNo personal gain

Fraudulent useDeliberate deception for unfair or unlawful gain


Abuse, Misuse, Negligent ViolationsExamples

Buying from a non-university contracted supplier

Pyramiding - intentionally splitting a purchase to circumvent delegated authority or transaction limits

Failing to maintain original receipts/documentation or obtain approvalsOther breaches of P-Card policies and procedures (see page 33 of Manual)


Abuse, Misuse, Negligent Violations: Administrative Actions

First violation: Warning letter sent

By Independent Reviewer (cc: P-Card Administrator) or P-Card AdministratorTo cardholder and their org unit head

Second violation:Warning letter sent

By Independent Reviewer (cc: P-Card Administrator) or P-Card Administrator To cardholder and org unit head; copy to Internal AuditAccount suspended for 30 days


Abuse, Misuse, Negligent Violations: Administrative Actions

Third violation:Letter sent

From Independent Reviewer or P-Card AdministratorTo cardholder and their organization unit headCopies to Internal Audit, Purchasing, and the appropriate senior administrator (i.e., vice president, dean or higher)Indicating cardholder can no longer participate in P-Card program

Card is terminated

Reinstatement of a level-three violator may be authorized following a review and approval of appropriate senior vice president or vice president


Fraudulent Violations

Using the card for personal or non-university purchases

Administrative and/or Disciplinary ActionsCard termination

Potential disciplinary action up to and includingEmployment termination

Criminal prosecution

Referred to Internal Audit to determine circumstances that warrant discussion with HR, Public Safety, General Counsel

Policy 2.1.1Alcohol Purchases


(Note: this policy applies to alcohol purchases; Board Rule 10-17-07 addresses possession, sale and consumption of alcohol on campuses.)

GuidelinesMay be justified for university-related purposes (e.g., business meals or university events)Managed with common sense, due careOrg units or college policies may be more restrictive

ApprovalPrior documented approval (signature or direct email) by senior vice president, vice president, dean or their designee (Policy Pre-Approval Form)

Amount - reasonable


FundingCharge to discretionary gift funds or expendable endowment funds (that have a broad restriction to be used for the benefit of that area)Do not charge to general, designated or auxiliary fundsSee Academic Health Center Policy

Payment - not allowed on a P-CardSponsored Projects

Not allowed unless specifically part of grant/contract


ExemptionsClinical or research useCulinary (or similar) academic programsResale by auxiliaries

ProcedureSubmit pre-approval document and original itemized receipts with approved reimbursement/payment paperworkSuggested GL accounts: 530407 (Alcohol (Approved Purchases)) or

531901 (Lab Supplies)Fund must be discretionary fund

Policy 2.1.2Employee Recruiting Expenses

Policy 2.1.2 Employee Recruiting Expenses

Allowable expensesMeals and entertainmentReasonable, prudent, commensurate with positionOriginal itemized receipts required

Meal expensesDocumentation: time, date, place, business purpose and attendees (IRS Rules)

Amount: Current federal per diem rate for that city Gratuities are part of per diem; not > 20%No need to pro-rate


Other related expensesEntertainment (Entertainment Policy)

Travel related to recruiting (Travel Expenses Policy)

Alcohol (Alcohol Purchases Policy)

Recruit accepts offer and moves (Relocation Expenses Policy – coming soon)

Payment methodsReimburse university employee

Reimburse recruit

Direct payment to vendor (including P-Card payments)


High Level Position RecruitingExamples: department chairs, eminent scholars, deans, vice presidents

Amount for meals and entertainmentGreater than federal per diem IF documented pre-approval by president, senior vice president, vice president, dean (Policy Pre-Approval Form)

Not in excess of $200 per person per day


Exceptions to policy: senior vice president, vice president or dean approval (Policy Exceptions Form)

ProcedureInclude any required documentation and original itemized receipts with approved reimbursement/payment paperwork or P-Card log

Suggested GL accounts: 530401 (Refreshments & Meals), 530405 (Entertainment), 535603 (Meal Allowance)

Policy 2.1.3Entertainment Expenses

Policy 2.1.3 Entertainment Expenses

What is “entertainment”?Purpose of activity, event or meal is

FundraisingPromotion of the universityEntertainment of university guests by “designated university officials” (i.e., deans, vice presidents, development officers, senior administrators, other employees asked to serve in a host capacity)

Entertainment expensesReasonable, fiscally prudent, appropriate to the occasionConsistent with the university’s missionExamples: performances, shows, hospitality, food and beverages, flowers, mementosApproval by senior vice president, vice president, dean or their designee


Amounts requiring pre-approvalMeal and entertainment expenses in excess of $75 per person per event or with an estimated overall cost exceeding $5,000; pre-approval by senior vice president, vice president, dean or their designee (Policy Pre-Approval Form)

(Note: Meal and entertainment expenses in excess of $200 per person per day for

employee recruiting are not reimbursed. [Employee Recruiting Policy])

Sponsored ProjectsNot allowed unless specifically part of grant/contract


ProcedureInclude any required documentation and original receipts with approved reimbursement/payment paperwork or P-Card log

Suggested GL accounts: 530401 (Refreshments & Meals), 530405 (Entertainment), 530407 (Alcohol (Approved Purchases))

Note: Entertainment expenses while on “travel status” are not reimbursed through the Travel Expense Report.

Policy 2.1.5 Professional Memberships,

Certification, Dues, and Subscriptions

Policy 2.1.5 Professional Memberships, Certification, Dues, and Subscriptions

Allowable expendituresSubscriptions to professional journals/newspapers; (org units are encouraged to share)Certification and licensing feesMembership dues to external professional organizations

Not union duesNot university organizations (e.g. UCAAMP, AAPW, UCATS, WIN, CRC)

Do NOT include Airline Clubs

MustBe appropriate for individual’s position/dutiesBenefit the universityBe approved by organizational unit head


Private Club Memberships/DuesMay be appropriate for key university personnel to advance the institution

Require pre-approval by senior vice president, vice president or dean (Policy Pre-Approval Form)

Considered taxable income (IRS Rules)Paid directly by individual; reimbursed through payroll

Sponsored ProjectsGenerally not allowable (however may be under certain unusual circumstances)Contact your sponsored program officer


ProcedureInclude original itemized receipts with approved reimbursement/payment paperwork or P-Card log

Suggested GL accounts: 531100 (Memberships & Dues) or 531101 (Professional Memberships & Dues)

532603 (Licensing/Certification Fees)

531201(Journals/Print Subscriptions) or 531202 (Database Subscriptions)

Policy 3.3.1Employee Reward, Recognition

and Acknowledgement

Policy 3.3.1 Employee Reward, Recognition and Acknowledgement

Policy addressesReward or bonus programsService recognition programsAcknowledgement for special life events

IncludesRelated allowable expendituresIRS implications

Recognition of excellent performance/achievement

Rewards/bonuses are an important part of total compensation program; they are NOT

Supplemental compensationAdjustments to base salaryVariable pay (such as commission)


DefinitionsReward/Bonus – cash or non-cash award for significant outstanding performance“Defined Reward/Bonus Program” – documented program developed, communicated, and implemented in consultation with HR and the president, senior vice president or vice president

Units mayDevelop a “Defined Reward/Bonus Program” ORGive rewards/bonuses in immediate response to a specific accomplishmentAcknowledge employee contributions through service appreciation programsAcknowledge certain employee life events


Guiding PrinciplesGiven for significant outstanding performance that advances unit goals; tied to a specific accomplishment

Meaningful to the individual

Careful communication and distribution so not viewed as an entitlement

Not a substitute for a competitive salary



Taxable incomeAll cash or cash-equivalents in any amount

Non-cash over $100Applies to all non-cash during a calendar year

Examples: spirit wear, fruit basket, flowers

Must be reported to Payroll for income reporting and withholding


ProcedureCash (any amount)

Process a one-time UC Flex HR PCR (use BONUS for reason code)

Cash equivalentQuarterly report to Payroll

Non-cash (up to $100) Non-cash over $100

Quarterly report to Payroll


Appreciation of ServiceMay occasionally be appropriate

Individual or group for extraordinary performance related to current position

“Thank you” when departing the university (e.g., retirement)

Work related; not personal events

At discretion of senior vice president, vice president or dean

Reasonable

Same IRS rules on taxable income apply


Employee AcknowledgementsMay be appropriate to acknowledge certain life events

Examples: birth/adoption of child, death of immediate family member as defined by HR Family and Medical Leave Policy, get-well wishes to an employee

Encouraged to collect among colleagues first but org unit may offer supportInitiate at the org unit level to avoid duplicationTypes of acknowledgement

Flowers, fruit basket, similar itemsContribution to a charitable organization if

Requested by familyMade to the named, not-for-profit 501 (c) (3) charity with a public service mission

Must not exceed $100; not taxable


Suggested GL Accounts for Other Costs Associated with Employee Recognition and Appreciation

530205 (Plaques/Trophies/Awards)

530207 (Flowers & Cards)

530400 (Meetings/Seminars/Events)

Questions?

Documents

Financial Policies Training: The First Eight Effective: February 1, 2008 Revised: May 1, 2009, March 1 and May 17, 2010