8.1.2 Determine the Allowability of Specific Expenditures

Program Books and Brochures for a System Event

Allowable from state, institutional, self-supporting, gift and endowment income, or service plan funds.

Community or Charitable Event

Allowable only from gift, endowment income, or service plan funds.

Examples

Performance, athletic, or concert programs are considered advertisements, as are books, brochures, newspapers, websites.

Unallowable

Advertising associated with political events is NOT allowable from any funds.

Allowable for system business purposes only, and only when system offices function as public reception areas (such as chancellors, deans, unit heads, or clinical or major research offices). The office typically provides courtesy refreshments to visitors.

The system has contracts that limit soft drink purchases to:

• Urbana—Coca-Cola products
• Chicago—Pepsi products
• Springfield—Pepsi products

Contact the appropriate university or system purchasing office for additional information regarding these contracts.

Examples

Coffee, tea, bottled water, soft drinks, related supplies, and small electrical appliances such as coffee pots, microwaves, and small refrigerators.

Allowable Funds

Allowable from state, institutional, self-supporting, gift, endowment income, or service plan funds.

Unallowable

Items that are for the personal use of employees, such as coffee and tea supplies, soft drinks, water, and small appliances (such as coffee pots, microwaves, and refrigerators).

See 8.1.5 Determine the Allowability of Specific Financial Support or Sponsorship Payments to Outside Organizations for related policies and procedures.

The cost of employee attendance at fund-raising events is allowable when meeting the guidelines below. If the event price includes an amount designated for donation, that portion is not allowable.

Community, Charitable

Expenses related to attendance at a charitable or community fund raiser are allowable only when approved in advance by the President, vice-president, chancellor, or vice chancellor for an employee representing the system at the event. Expenses paid on behalf of an employee's spouse, guest, or companion are generally taxable income to the employee.

Business, Civic, and Social

Tickets to a business, civic, or social function that advances system programs and objectives are allowable when attended by employees when approved in advance by the President or chancellor (at UIS, the vice chancellor can approve). When spouses, guests, or companions are expected to attend, their expense is allowed and may be reported as a taxable benefit to the employee.

Attendance with a Prospective Donor

Tickets to a fund-raising event attended by a system employee with a prospective donor are allowable.

Examples

Charitable organization kick-off breakfast, Chamber of Commerce event

Allowable Funds

Gift, endowment income, or service plan funds

Unallowable

Tickets for attendance to political events (such as fund raisers, receptions, dinners) are unallowable from any funds.

Some membership costs are allowable from state, institutional support, gift and endowment income, service plan and self-supporting funds (when directly related to the generation of the fund's revenue):

Professional Organizations—Employee memberships in professional organizations are allowable when the memberships benefit system business purposes and/or the employee's job-related activities. Memberships are normally paid on a yearly basis. Memberships that exceed three years must be approved as an exception.

Institutional Memberships—Institutional memberships (umbrella membership that provides all qualified employees with membership) in professional organizations must be approved by the unit head, dean, or head of the administrative unit purchasing the membership.

Airline Clubs and Lounges—Memberships in airline clubs and lounges must be approved by the Chancellor or equivalent. Approval may only be granted after review of relevant information showing that such a purchase is the most cost-effective option for the type of travel required. An approval is valid only for the term of the membership (one year) and must be provided for each subsequent renewal request. Memberships in airline clubs and lounges are considered a taxable fringe benefit to the individual and must be reported by the unit providing the benefit to University Payroll and Benefits for proper withholding as outlined in 4.3.5 Submit Taxable Fringe Benefit Payments. Gross-up payments for any potential withholding are not permitted.

State funds cannot be used for any type of airline clubs and lounges membership purchase. Airline clubs and lounges membership may only be purchased using the following fund types:

• Educational and administrative allowance (fund type 2A)
• Indirect cost recovery (fund type 2C)
• Royalty (fund type 2E)
• Endowment income (fund type 4J), as long as the airline club/lounge membership expense is in compliance with the donor intent restrictions assigned to the fund
• Gift (fund types 2G or 4M), as long as the airline club/lounge membership expense is in compliance with the donor intent restrictions assigned to the fund
• Service plan (fund types 4S, 4T, 4U, or 4W)

Self-supporting (fund types 3J, 3M, or 3Q – but not 3E), as long as the airline club/lounge expense is directly related to the generation of the fund’s revenue.

Unallowable

The following are unallowable from any funds:

• Social Organizations—Memberships in social organizations (for example, Kiwanis, Lions, etc.)
• Warehouse Discount Clubs—Memberships in warehouse discount clubs (for example, Sam's Club and Costco) because employees may not enter into contractual agreements on behalf of the system.
• City Clubs and Country Clubs (for example, social or athletic clubs, the City Club of Chicago, or Illini Country Club)
• Health/Athletic club memberships

Employees may incur travel-related expenses within their headquarters while performing their duties, even though they are not in travel status. Common examples include mileage and parking for attending a meeting across campus or to deliver documents. Units may accumulate these expenses on a monthly basis and request reimbursement by following the steps in 8.2.1 Request Reimbursement for Domestic or International Employee Travel and Business Meals.

Parking Expenses—University parking hangtags and stickers may be paid from all funds, but only for system guests or employees who are in travel status, away from official headquarters. System funds may sometimes be used for parking hangtags, stickers, and validation codes for employees whose responsibilities require frequent travel within his/her headquarters for system business purposes only.

Parking Citations—Parking citations for guests conducting system business may be paid only from gift and endowment income, service plan, and self-supporting funds (when directly related to the generation of the fund's revenue).

Unallowable

These citations cannot be paid from any system funds:

• Parking citations/violations issued to employees.
• Traffic citations incurred by employees.

Unallowable

Expenses of a personal nature are not allowable from any system funds. Following are some examples or items that are considered personal in nature:

• Childcare expenses of employees
• Library fines incurred by faculty and staff
• Health/Athletic club memberships

Postage stamps for system mail are allowable from all funds. However, postage stamps purchased with state funds must be perforated with a Block "I" for identification purposes according to Illinois State Statute 30 ILCS 500/25-35b. These perforated stamps are available for purchase at:

• Urbana—Campus Mail (54 East Gregory Drive- Printing Building) or online through Illini Union Campus Mail
• Springfield—Campus Services, Mail Department (Building Services Building, Room 139)

Non-perforated stamps are allowable only from institutional, gift and endowment, self-supporting (when related to the generation of the fund's revenue), and service plan funds.

The Statewide Accounting Management System (SAMS) Manual prohibits the purchase of postage stamps by individuals. Thus, any purchase of postage stamps must be paid directly to the vendor as opposed to reimbursing an employee.