POLICY SUMMARY FORM
Policy Name: Discretionary Use of University Funds
Policy Number: 3.10
Is this policy new, being reviewed/revised, or deleted?
Review/Revise
Date of last revision, if applicable: 4/23/2013
Unit(s) Responsible for Policy Implementation: Vice President for Finance and
Administration
Purpose of Policy (what does it do): Provides definitions of what is considered discretionary
funds and discusses allowable and unallowable use of these funds.
Reason for the addition, revision, or deletion (check all that apply):
Scheduled Review
Change in law
Response to audit finding
Internal Review
Other, please explain:
Please complete the appropriate section:
Specific rationale for new policy:
Specific rationale for each substantive revision: Added a reference to the list available on the
controller's website of those funds that are considered discretionary funds.
Specific rationale for deletion of policy:
Additional Comments:
Reviewers:
Debbie Sellman, Budget Director
Dannette Sales, Assistant Controller
Dora Fuselier, Controller
Danny Gallant, Vice President for Finance and Administration
Damon Derrick, General Counsel
Discretionary Use of University Funds
Original Implementation: April 23, 2013
Last Revision: NoneApril 12, 2016
Stephen F. Austin State University receives funds from a variety of sources, including state
appropriations, tuition and fees, auxiliary revenues, departmental sales and services, grants, and
gifts. Most of the funds received are for specific, limited purposes or are subject to restrictions by
the Board of Regents, state and federal legislation, and rules of other oversight agencies.
Regardless of type, the university uses all funds in a manner consistent with applicable federal
and state laws and regulations, university policies, and other restrictions or designations.
Because of legal or policy restrictions, only specific funds can be used for discretionary
purposes. Funds that are allowed for discretionary purchases must be used for a valid business
purpose. Examples of valid business purposes include but are not limited to certain types of
business meals, administrative planning retreats, and business travel expenditures. Some
examples of funds that may be used for discretionary purposes include discretionary donor gifts
to departments, undesignated donations, funds from sales and services, and interest earned on
certain institutional funds. Examples of university policies that restrict university expenditures to
specific funds include, but are not limited to: Gift, Prizes and Awards (3.18), Food Purchases
(17.6) and Travel (3.29). The controller’s office website contains guidelines for the discretionary
use of university funds and a list of funds that can be used for discretionary use.
Cross Reference: Gift, Prizes and Awards (3.18); Food Purchases (17.6); Travel (3.29)
Responsible for Implementation: Vice President for Finance and Administration
Contact for Revision: Controller, Budget Director
Forms: None
Board Committee Assignment: Finance and Audit
3.10 Discretionary Use of University Funds
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