Unacceptable Disbursement Requests
OFFICE OF TREASURY SERVICES
POLICIES & PROCEDURES
V. UNACCEPTABLE DISBURSEMENT REQUESTS
Examples of Inappropriate Expenditures
Any requests for payments which the UAF staff deem inappropriate will be referred back to the responsible person. The following list includes, but is not limited to, examples of inappropriate expenditures:
- Paying for goods and services to avoid the State of Ohio bid process.
- Reimbursing travel expenses of employees to avoid documenting expenditures and processing University Travel Expense Reimbursement forms.
- Paying for flowers for funerals of or memorials to former departmental employees.
- Payment for miscellaneous fines and penalties for visitors and employees.
- Making donations, other than memorials in honor of donors or their family members, to non-profit organizations.
- Paying for upgrades to first-class travel where such upgrades are not allowable under UA travel regulations, or otherwise purposefully avoiding UA travel regulations.
- Loans and advances to individuals for non-University purposes.
- Expenses of an employee’s spouse where a UA purpose is not being served and such expenses have not been approved in advance.
- Amenities (i.e., toaster ovens, refrigerators, etc.) at an employee’s place of work which do not conform to UA standards and practices. All physical improvements to University buildings/property require the University’s advance approval and must conform to UA standards and practices. Written approval from the University’s Vice President for Capital Planning and Facilities Management, or his/her designee, must be obtained prior to commencing any physical improvements and/or soliciting funds for such projects.
- Contributions to local fund drives and civic groups and similar goodwill gestures of a personal nature.
- UA travel per diem.
- Third-party payments. A UAF account cannot be used for reimbursement of expenses paid by a third party for taxable services (i.e., catering, photography, musicians, etc.) rendered. Such taxable payments must be paid directly to the person who performed the service.
- The UAF must not make payments directly to UA employees for services or honoraria or make payment directly to UA students for scholarships, fellowships, prizes, and similar awards. Such payments must be made through UA. As required by the IRS, the UAF must report certain payments to recipients on forms 1099-MISC annually. Funds held by the UAF for these purposes must be transferred, as needed, to an appropriate account at UA (see Section VI, “Transfer of UAF Funds”) and paid to the employee through the UA payroll system. All payments for scholarships and fellowships must be paid to the UA Student Financial Aid Office and not directly to the recipient. This will ensure a student is not over-awarded and that there are no tax consequences to the recipient. The payments listed below must not be made directly to UA employees through UAF accounts.
- Expense allowances where no substantiation or accounting of expenses is required prior to payment.
- Merit awards and prizes for outstanding performance or achievement.
- Fellowship grants, stipends, and awards if any of the following conditions exist:
- The payment is provided as part of general compensation.
- UA has the right to direct or control the activities for which the payment is made.
- The payment serves as support for the recipient’s teaching or administrative functions.
- Moving or relocation expenses reimbursement in excess of Internal Revenue Service maximums.
- Compensation for services benefiting UA.
- Wages to individuals who meet the IRS criteria for employees. Any individual who will be working for a unit and does not qualify as an independent contractor should be added to UA’s payroll system before he/she begins working. Units having questions regarding a person’s employment status should immediately contact UA’s payroll department.