TO: Deans, Directors, and Chairs
SUBJECT: Reimbursable Expenses
Our office has been engaged in a random study of various expenditures to determine if there is any unreported income to employees for income tax purposes, as well as to review the overall credibility and efficiency of the accounts payable system.
The study has established that there may be problems with the following types of transactions:
1. Entertainment, parties, and various celebrations.
2. Luncheon expenses -- involving employees exclusively.
3. Purchase of flowers, gifts, etc. for employees, relatives, and students.
4. Purchase of alcoholic beverages for student consumption.
Some of the above present problems relative to proper recognition of employee compensation, others relative to host liability issues, and some simply relate to conservation of University resources and equity in expenditure policies from department to department.
Accordingly, our office has drafted the attached policy statement relative to these issues. Since there has been an absence of written policy, I would suggest we start applying this now and make adjustments as may appear warranted. Your constructive criticisms are certainly welcomed, and your support of these policies is solicited.
University of Tulsa
Purchasing & Reimbursement Policies Relating to
Personal Gifts, Entertainment, Meals, & Flowers
All expenditures of the University must conform to the stipulation that they are necessary for the proper execution of University business and in justifiable pursuit of the University's educational, research, and public service objectives. Expenditures should also be reasonable and not extravagant. The following guidelines for specific items apply:
Personal Gifts - University funding is inappropriate for purchase of Christmas, birthday, retirement, and other types of gifts for employees or students. Exceptions are: formally established honors, awards, and other official recognitions. Fellow employees may solicit gifts for retirement or other recognitions.
Meals & Entertainment - Personal meals are normally covered by the University's travel and expense policy (attatched). Goodwill meals and other entertainment may be reimbursed providing a non-employee is involved and the pursuit of University business is clearly defined.
Departmental & Collegiate Parties, Luncheons, etc. - Should be approved in advance by the President and be reasonable and necessary.
Expenditure for Alcohol - Expenditures for provision of alcohol to students cannot be reimbursed.
Flower Purchases - It is University policy to provide flowers or other appropriate items involving hospitalization of employees and in case of death of employees or close relatives (parents, spouses, and children). The University will annually issue a blanket purchase order with a designated florist, and the University Relations office should be notified of occurrences. University Relations will normally execute the order. In the event of occurrences over weekends and holidays, orders may be authorized by Deans and Vice Presidents through the florist contact, if practical. (This policy is established to reduce processing costs, disputes with florists, and to avoid duplicate orders).
Exceptions to these polices may be made by the President.