03.016:  Foundation Expenditures

Status:	Approved on January 6, 2004	Signatures and dates on archival copy
Effective:	when approved
Initiated by:	Cindy Strausbaugh Foundation Accounting Office Manager
Reviewed by:	Herman ("Butch") Hill, Chair Policy and Procedure Review Committee
Endorsed by:	Gary North Vice President for Administration and Finance
Approved by:	Stephen Kopp Provost

Purpose

To inform users of Foundation accounts of the appropriate uses of Foundation funds.

Policy

Foundation funds are available to support the teaching and research missions of Ohio University through the purchase of equipment or the underwriting of expenses associated with these activities. Additionally, Foundation funds may be used to further other legitimate educational and advancement interests. In order to provide for consistency and uniformity in the use of these funds, the following guidelines are provided:

1. All authorized uses of Foundation funds must first meet basic restrictions imposed by the donor.

2. All expenditures are expected to be reasonable, to have a direct University business purpose, and to be compatible with and enhance its educational mission.

The Executive Director or the Treasurer of the Foundation are available for consultation and advice on expenditures of Foundation funds. When appropriate, the Director will consult with the Foundation's Treasurer or with Counsel. The Executive Director's decision on the suitability of an expenditure is final.

Procedures

I.  Expenses Permitted on Both Foundation and Operating Funds

Foundation funds may be used for any expenditure permitted on University operating funds, with the exception of on-going salaries, wages and benefits for permanent employees (overtime and overload contracts are permissible). See Policy 41.121, "Reimbursement for Official Travel," Policy 41.123, "Entertaining Official Guests," Policy 55.003, "Purchasing Authority: Vendor Selection, Personal Purchases, Land and Building Acquisition, Conflict-of-Interest," and Policy 55.074, "Purchasing Card," for discussion of allowable expenses in the respective categories.

II.  Expenses Permitted on Foundation But Not on Operating Funds

Foundation funds may be used for the following items, which are not generally permitted on operating funds:

1. Alcoholic beverages used in official University entertainment.

2. Flowers for:
   • A hospitalized employee (or similar circumstance)

   • The funeral of an employee or member of the employee's immediate family (as defined by Policy 40.030, "Sick and Bereavement Leave Program for Classified Employees").

   • The funeral of a benefactor or an individual who has had a business relationship with Ohio University

   • Decoration of official entertainment and events

   • Employees for professional purposes

   • Persons external to the University, and their families, who have a philanthropic relationship to the University.

3. Individual gifts not to exceed $100 to:
   • Persons external to the University who have a business or an advancement relationship to the University in appreciation of their efforts.

   • Students for graduation.

4. Travel and entertainment expenses for spouses of University employees who do not have a demonstrated business purpose per IRS regulations (will be reported as compensation to the extent required by law).

5. Non-alcoholic beverages for employees' daily consumption within the office.

6. Infrequent departmental social gatherings with families.

7. Holiday cards to persons or entities external to Ohio University who have a business relationship to Ohio University

8. Scholarships from discretionary accounts.

9. Athletic tickets used for the entertainment of individuals with a business or a philanthropic relationship to Ohio University.

10. Season tickets to University events for Academic and Executive Officers and their spouses (will be reported as compensation to the extent required by law).

11. Civic or social club memberships for University employees.

12. Community goodwill.

13. Expenditures of a fundraising nature reasonable and necessary to the fulfillment of the Foundation's fundraising goals.

14. Expenditures of an alumni relations nature reasonable and necessary to foster goodwill among Ohio University alumni.

15. Expenditures reasonable and necessary to the fulfillment of the duties of the office of the President, and Academic and Executive Officers of the University.

Reviewers

Proposed revisions of this policy should be reviewed by:

1. Policy and Procedure Review Committee

2. Director of Legal Affairs

Forms

There are no forms that are specific to this policy.

Dick Piccard and Kristina Schnelle revised this file (http://www.ohiou.edu/policy/03-016.html) on January 6, 2004.

Please E-mail any comments or suggestions to "polproc@www.ohiou.edu".