Endowed Professorship Funds
From ITS Wiki
As we begin 2008, a new tax year, our office wanted to assist you in understanding the spending guidelines for professional enabling funds, restricted funds, or any other fund set aside for use at the discretion of either an individual or a group of individuals. As a result of Sarbanes-Oxley, and increased rigor on the part of both our internal and external audit, we need to be very clear on what is, and what is not, appropriate in terms of expenditures. In addition to protecting both you and the College in any future audit, we would also like to assist you in finding the most competitive pricing and purchasing the most compatible equipment, in terms of computer hardware and software. Accordingly, the following guidelines are to serve as a reference when making professional purchases with any discretionary fund.
Please remember these are general guidelines and are meant to (1) protect you and the College during any internal and external audit, (2) protect the College from inappropriate use of its funds, (3) ensure that your expenditures aren’t subject to income tax, and (4) keep Centre compliant with sales tax law.
Ownership In the same way the initial funds are the property of the College, purchases made with those funds are also either the property or the expense of the College. Property, which may be depreciated by the College includes, but is not limited to computer equipment, instruments, furniture, art, and photographic equipment. Expenses, which will be deducted by the College, include travel, subscriptions, services, any supplies.
Of course, since all such purchases are either made or reimbursed by the College, none may be deducted on your personal tax return.
Receipts These are required for all expenditures, which fall into three broad categories. The first are expenses submitted for reimbursement. Receipts are required in order for any reimbursement to occur. The second group includes expenditures made with a credit card. As agreed upon receipt of your card, all receipts should be kept in a chronological file, which should be readily accessible in the event of an internal audit. This includes not only the summary credit card receipt but also the itemized receipt listing the items purchased. Meals should also include purpose and attendees. The third category is an advance, for which a subsequent expense report is promptly completed and submitted, in addition to any unspent monies.
Location of Property Although it’s not uncommon for such purchased equipment to be kept and used off-campus, it is imperative that a listing be maintained of any property kept at your home or any other location. This listing should include a brief description, serial number, cost, and location. A copy of the listing should be given to the Dean of the College and to the Controller.
Suitable Expenditures It’s important to note that all expenditures must be directly related to the underlying purpose of the particular fund. Additionally, such property is not for personal use, unless minimal. Examples follow of both acceptable and unacceptable expenditures.
Generally Acceptable
- Discipline or classroom related books.
- Student assistants, field trips, travel and conferences.
- Photographic equipment used exclusively for academic pursuits.
- Computer equipment used exclusively for academic pursuits.
- Associations directly related to discipline or field of study.
- Professional travel for scholarship and/or teaching.
- Equipment and supplies for research and/or teaching.
- Entertainment for class and or professional reasons.
- Other items directly relevant to your teaching or scholarship.
Generally Unacceptable
- Home internet connections also used for personal business.
- Travel, conferences, etc. unrelated to either discipline or classroom activity.
- Home office expenditures for equipment, repairs, renovations, etc.
- Home or auto repairs.
- Expenses for travel or other activities for family members (unless those family members have been retained by the College for engaging in the particular college activity).
- Equipment unrelated to classroom or scholarship.
Other Matters Please check with the Dean’s Office if you have any doubt whether a planned purchase is appropriate.
Whenever possible, invoices should be addressed to, and paid directly by, the College.
The fiscal year runs from July 1 through June 30 each year. It is important that expenditures and travel taken are reimbursed from the proper year’s budget. Therefore, we will be unable to accept receipts for expenditures made between July 1, 2007 and June 30, 2008 after June 30, 2008. The only exception is for travel booked in advance, as this will come from the budget year that the travel occurs.
Computer hardware and software, printers, scanners and related expenditures should be made with the approval of Centre’s IT department to insure both compatibility with our system and to enable equipment tracking capability. This process also assures sales tax isn’t being paid and that we are taking advantage of our pricing breaks. Additionally, IT cannot service equipment unless it’s included in their inventory.
Conclusions These guidelines are meant to reduce ambiguity with the application of funds, and to encourage open and frank conversation as to reimbursement. Most importantly, it is in recognition of Sarbanes-Oxley, tax law, and the increased documentation required by our auditors, that we need your compliance. This will protect both you and the College from unknowingly using professional funds in an inappropriate way.