Expenditures of Public Funds
Guidelines, Standards, and Limits
Overview
 Intended to be comprehensive
 Applies to all expenditures, whether purchased directly by
the University or reimbursed to an employee
 Must directly advance the University’s and/or PASSHE’s
mission
Even when delegated, the University President is accountable
and responsible for all University expenditures
Public Funds – All monies received by a PASSHE
University or the Office of the Chancellor
 State appropriation
 Ticket sales from athletic,
 Tuition
cultural, or other events
 Corporate sponsorships
 Investment income
 Room
 Board
 Other student fees
 Restricted & Unrestricted
gifts
 Restricted & Unrestricted
grants
Documentation
 All receipts must be itemized, clearly indicating the
items purchased.
 Must be original receipts. No copies.
 Credit card receipts showing only the total are not
acceptable.
 Reimbursement for the actual cost of meals must state:
 Business purpose
 Names of attendees
Documentation – contd.
 Receipts for meals at business meetings must show:
 Number of diners
 Meals that were purchased
 Business purpose
 Date, time, Location (e.g., city/state)
 Whether or not alcohol was purchased
 Payment or reimbursement cannot be made without an
itemized receipt
 Under no circumstances will reimbursement be made for
alcohol
Transfer of Funds to Affiliates &
Other Entities
 University funds may not be transferred to any outside
organization, including affiliates except under fiduciary
arrangements for certain restricted funds:
 When a service is provided (through bid process)
 University event managed by the affiliate (athletic camp), liabilities
assumed by affiliate, expenses paid by affiliate
 Services provided related to a grant which the University
subcontracts with the affiliate
 Gifts received directly by the University may not be deposited by
or transferred to a foundation or affiliate
Restricted & Unrestricted Funds
 These guidelines apply to both restricted and Unrestricted gifts and grants
unless:
 The donor’s or grantor’s specifically stated provisions may override applicable
policy restrictions
 University funds are restricted only when restricted by the provider of the funds
 BOG, COT, University Presidents, Office of the Chancellor employees, nor any
other employee can cause university funds to be restricted in an effort to
circumvent the guidelines, standards, and limits of the guidelines
 If grantor or donor specifies expenditures of a grant or gift are to be purchased
from a particular vendor, legality and appropriateness of such a procurement
must be approved by University Legal Counsel and an appropriate contract
must be used to procure the goods or services
Designated, Self-Supporting
Revenue Streams
 Revenue which is specifically designated for some purpose
(travel abroad programs, athletic camps & conferences)
 Fees paid by the individual participants fully cover the associated
costs and are specifically intended to purchase food, clothing,
equipment, or any other item on behalf of the participant – such
items may be purchased with the exception of alcohol.
 Revenue from self-supporting activity may not be used on behalf
of employees to make purchases that are otherwise prohibited in
the guidelines unless clearly & directly a necessary part of the
activity and directly related to the participants.
Volunteers
 BOG Policy 1991-04-A, Volunteerism
 BOG Policy 1984-14-A, Terms and Conditions of
Employment of Senior Policy Executives
 Request for Reimbursement of Expenses Incurred by
Volunteers (including spouses or partners of Presidents)
 Must be verified by the volunteer
 Must clearly state the business purpose
 Must be in accordance with BOG Policy 1986-07-A
Travel Expense Regulations
Alcohol
 The purchase or reimbursement of alcohol, under all
circumstances, is prohibited.
 One exception: Alcohol may be purchased when it is a
necessary and integral part of the curriculum of an
established academic program.
Expenditures for Foods
 A Modest Expenditure is Allowed for the Following when
specific criteria are met as per the guidelines:
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Official University Functions
Business Meetings with External Parties
Evening Receptions
Staff Retreats, Workshops, and Training
Overtime and Extraordinary Circumstances
Meetings & Other Events with Students
Holiday Receptions & Employee Picnics
Employee recognition events
Internal Business meetings & staff meetings
Food & kitchen supplies in the office
Kitchen appliances
Gifts & Awards
 The following can only be purchased by the President:
 Floral tributes
 Greeting cards and invitations to official university events
 Employee awards
 Employee gifts – Gifts of a personal nature are not allowed
 Gifts and awards to students and others – Allowed with
guidelines
Promotional Items & University
Clothing
 Small-value promotional items (lapel pins, pens, candy, key
rings, t-shirts) imprinted with the University logo can be
purchased in conjunction with the University’s marketing
plan.
 Clothing with the University logo and/or event designation
for employees, students and volunteers serving as official
University representatives for various University events
may be purchased.
 Purchase of larger-value promotional items such as
clothing, engraved vases, watches, etc. to be given away as a
marketing tool is prohibited.
Entertainment
 Allowed:
 Purchase of theater tickets and cultural events for students and the sponsoring
University employees or volunteers only when the events are a necessary &
integral part of the curriculum
 Not Allowed:
 Payments for employees to attend the theater or other amusements and social
outings or to participate in events such as golf outings unless:
 The event is an official University event
 The event serves clearly to advance the strategic goal of the University
 The employee is attending as an official representative of the University
 Payments for entertainment services in conjunction with a business meeting
 Payments for entertainment services as part of a recognition event solely for an
employee
Political Organizations, Charitable
Organizations, &Community Relations
 Payments for political contribution or sponsorship of any kind is prohibited.
 Redirection of public funds to other organizations in the form of charitable
contributions is prohibited.
 Expenditures to charitable organizations in exchange for service of equal value
are allowed as follows:
 Payments to local non-governmental emergency response organizations when
part of a written agreement that includes services (the amount of the payment
must be commensurate with the services received).
 Payments for a University advertisement in a printed program for a charitable
event when the cost of the advertisement is determined by the University to
provide reasonable value.
 Universities cannot use public funds to sponsor all or part of a sporting (golf
tournament) or cultural event designed to support a charity.
Professional Dues & Memberships
 Payments for employee professional memberships are
allowed (subject to supervisory & budgetary approval)
when the professional organization bears a direct
relationship & benefit to the employee’s current
position duties and/or the membership offsets the cost
of a professional conference that the employee is
attending.
Cell Phones, Laptops, and Other
Individualized Equipment
 Equipment such as cell phones, smart phone,
Personalized Digital Devices (PDAs), laptops, etc.
usually are issued to individual employees for their
specific use. Such devices are University property and
employees’ use must be in accordance with BOG
Policy 2009-01, Acceptable Use of Technology, and
ESU’s written policy(ies) governing the devices.
Floral & Other Decorations
 Purchases of decorative floral arrangements are only
allowed when part of a formal, official, University
ceremony or public event such as commencement,
groundbreakings, etc.
Expenditures on Behalf of Student
Associations
 Universities may not use public funds to augment
student government associations (student government
field trips) unless the activity is part of an official
University academic or student support program.
 Universities may not use public funds to purchase
personal items for students in conjunction with their
participation in activities such as homecoming.
Personal Expenses
 Public funds may not be used to:
 Clean nonpublic areas of presidential residence
 Provide chauffeur, cooking, or other services to Presidents or
members of their family
 Purchase bedroom and bath linens and supplies, personal
furnishings, decorations, artwork, and other items that are used in
the nonpublic areas of the residence
 Purchase food, table linens, and kitchen supplies used personally by
the President and his/her family
 Install personally owned fixtures such as lighting, artwork, etc.
 Install fencing or other accommodations for pets.
 Purchase excessive expenditures for holiday decorations in the
public areas of the residence.
 Incur any other personal expense of the President, except as
provided in the President’s employment contract
Exceptions
 Must be recommended in writing to the President by
the applicable Vice President or Dean and
subsequently approved
TOP TEN MISUSE OF
USE OF PUBLIC FUNDS
 MEALS &
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REFRESMENTS AT
INTERNAL & STAFF
MEETINGS
ITEMIZED MEAL
RECEIPTS
PER DIEM vs ACTUAL
COST OF MEALS
COFFEE FOR OFFICES
GIFT CARDS
 GIFTS PURCHASED BY
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EMPLOYEES FOR
FELLOW EMPLOYEES
PROMOTIONAL
CLOTHING ITEMS
NOTE CARDS
FLOWERS
SPONSORSHIPS and
MEMBERSHIPS