Spending Policies

1. The Miscellaneous Disbursement Voucher (MDV) is used to:
a) reimburse out-of-pocket expenses, or
b) pay for those goods or services excluded from the purchasing system. (Verification should be made with the Purchasing Department if there is a question regarding an acquisition.)

Payment cannot be made to the University or a University department on an MDV (for example, Continuing Studies, Crimson White). Departmental transfer forms (DTA) are used for this purpose.

2. Generally, the following types of payments would be payable on an MDV; for more information, refer to the specific guidelines for each category.

a) entertainment/recruitment
b) conference or meeting expenses

c) out-of-pocket expenses

d) honoraria and professional services

e) relocation expenses

f) awards, scholarships, fellowships, stipends

g) student advances

h) petty cash reimbursements

3. The MDV form is available on the web at http://financialaccounting.ua.edu/forms/.

4. When preparing MDVs, current versions of the Account Code listing can be viewed on e~Print. Go to https://eprint.ua.edu and use your bama ID and password to log in. Note that account codes 70XXXX should never be used on an MDV.

B. Payment Processing

1. A request for reimbursement should be submitted within 60 days of the expenditure. (The Internal Revenue Service requires that substantiation of reimbursed expenses be made within a reasonable period. Under the IRS safe-harbor rule, that period is 60 days.) Any request for reimbursement after 60 days is taxable income to the employee. Withholding will be made from a subsequent salary check.
2. If a voucher has a deadline or a due date, note and highlight in the SPECIAL MAILING INSTRUCTIONS box on the printed form, or check and highlight in the box THIS HAS A DEADLINE on the web form.

3. Checks are cut twice each week. Allow at least seven to ten business days for processing by Accounts Payable.

4. Checks must be mailed to all third-party vendors. Checks cannot be picked up.

C. Documentation

1. Payment via MDV requires original receipts or invoices. Staple (don't clip) these to the voucher to help keep the documentation with the voucher.
2. If a receipt does not detail the items purchased, a description of each item on the receipt must be given.

3. Until payment is made, the department submitting the MDV should keep copies of all documentation, as well as a copy of the MDV, in case questions arise.

4. Appropriate documentation required for reimbursement may include the following:

a) Original receipts (see note below)
b) Canceled checks

c) Credit card slips (see special requirements for Entertainment-Meals, Section II.D.3)

d) Bank statements that give details of paid checks

e) Credit card statements

Note: The term original receipts does not include a tab torn from the bottom of a restaurant ticket on which one can write an amount.
Consult Accounts Payable for approval of other forms of documentation.

D. Prohibited Expenditures

University funds may NOT be used for the following types of expenses: (All Foundation Accounts are excluded from this policy unless otherwise noted.)
1. Alcoholic beverages, set-ups, bartender, and/or corkage fee

2. Flowers as gifts

3. Christmas cards

4. Christmas decorations

5. Donations or contributions (this prohibition includes Foundations ). Donations may be made from foundation funds only in cases where the contributions benefit the University and thereby further the exempt purpose of the foundation. The purpose of the not-for-profit to which a contribution is being made is reviewed by the Tax Manager to determine if a beneficial relationship can exist between it and the University or our educational foundations.

6. Gifts are prohibited, except for memorabilia given to donors, visitors, alumni, students and potential students. The memorabilia must be inscribed/imprinted with words and/or pictures identifying the University.

7. Entertainment of UA employees, including retirement and Christmas parties, except as allowed by UA entertainment policy (refer to Section II herein).

8. Expenditures for athletic, theatre, or similar events as a form of entertainment.
Exception: Entertainment of prospective employees and their spouses at University sponsored events or local cultural events are appropriate recruiting tools.

9. Refrigerators, microwaves, or coffee pots, unless as replacement for original building equipment or when needed for instructional or research purpose or for conferences, workshops, or meetings sponsored by the University for the public.

10. Coffee, cream, sugar, soft drinks, cups, napkins, etc., when intended predominantly for consumption/use by University employees, unless otherwise covered by the University's entertainment guidelines.

E. Special Accounting Treatment

Federal cost policies dictate that certain expenditures be given special accounting treatment. Even if not directly charged to the federal government (i.e. charged instead to a departmental operating account), expenditures considered to be federal unallowable costs must be separately identified in the accounting records. Federal unallowable costs fall into two categories, those costs unallowable in and of themselves (see number 4 below, Entertainment) and costs incurred for purposes that are unallowable. These unallowable purposes are as follows:
1. Advertising and public relations: Unallowable advertising and public relations costs include the following:

a) costs of convocations or other events related to instruction or other institutional activities, including:

costs of displays, demonstrations, and exhibits

costs of meeting rooms, hospitality suites, and other special facilities used in conjunction with shows and other special events

salaries and wages of employees engaged in setting up and displaying exhibits, making demonstrations, and providing briefings

b) costs of promotional items and memorabilia, including models, gifts, and souvenirs

c) costs of advertising and public relations designed solely to promote the institution

d) all other advertising and public relations costs not for one of the following purposes

advertising for the recruitment of personnel

advertising for the procurement of goods and services

advertising for the disposal of scrap or surplus materials

advertising for another specific purpose necessary to meet the requirements of a sponsored agreement

public relations specifically required by a sponsored agreement

communicating with the public and press pertaining to specific activities or accomplishments which result from performance of sponsored agreements

conducting general liaison with news media and government public relations officers, to the extent that such activities are limited to communication and liaison necessary to keep the public informed on matters of public concern, such as notice of contract/grant awards, financial matters, etc.

2. Alumni activities: Costs incurred for, or in support of, alumni activities and similar services are unallowable.

3. Commencement and convocation costs: Costs incurred for commencements and convocations are unallowable.

4. Entertainment costs: Expenditures directly for entertainment, including amusement, diversion, and social activities, are unallowable in and of themselves and should be recorded in account codes 73XXXX. Entertainment is also an unallowable purpose. Costs directly associated with entertainment (such as travel for the purpose of entertainment) are, therefore, also unallowable.

5. Fundraising: Costs of organized fundraising, including financial campaigns, endowment drives, solicitation of gifts and bequests, and similar expenses incurred solely to raise capital or obtain contributions, are unallowable.

6. Lobbying: Legislative liaison activities, including attendance at legislative sessions or committee hearings, gathering information regarding legislation, and analyzing the effects of legislation, are unallowable when such activities are carried on in support of or in knowing preparation for an effort to engage in unallowable lobbying.

F. Year End Processing

1. Current-year funds may not be used to pay for expenditures relating to the new fiscal year, including but not limited to the following:

a) Subscriptions, memberships or maintenance agreements for time periods beginning after September 30
b) Registration fees for conferences, seminars or other events occurring after September 30

c) Airline tickets for travel occurring after September 30

MDVs should be submitted to Accounts Payable through the normal process. Payment will be made from a deferred account number added by Accounts Payable. A journal entry will be done to move the charge to the departmental account number after October 1.
2. For charges that are to be paid out of current-year funds, MDVs must be submitted to Accounts Payable by the appropriate deadline. "Critical Date" reminders will be sent out through campus mail and will be available on the Accounting and Reporting web page financialaccounting.ua.edu under Accounts Payable, Critical Dates.

II. ENTERTAINMENT

A. Introduction

Today, it is understood that business and professional discussions and negotiations frequently take place during periods of entertainment. The University of Alabama recognizes that such business entertainment is essential to its operation. It is the desire of the University, however, to place this activity in proper focus, to prevent abuses, and to issue guidelines for these expenditures. In this regard, certain conditions must be met before entertainment expenses will be authorized as necessary and reasonable operating expenses to the University. These conditions are set forth in the following guidelines:

B. Categories of Entertainment

To be allowable, the purposes of the entertainment must be business and not personal.
1. Allowable

a) It is the policy of the University to invite prospective faculty or staff, both husband and wife, to visit the campus. Travel and all other reasonable and necessary expenses are reimbursed. When it occurs on a reasonable basis associated with a recruitment visit, entertainment is recognized as a proper expenditure. The faculty and staff involved in this type of entertainment should be essential to the interview process. When the prospective candidate is accompanied by his or her spouse and it is deemed necessary to have the spouse of a University faculty or staff member present, entertainment expenditures for the spouse may also be reimbursed.
b) In certain cases, it is recognized that entertainment of official University guests is essential. This entertainment should usually be undertaken by administrative officials, deans, department heads, or senior faculty members. Examples of official guests include the following: visiting lecturers; visitors from foreign countries; representatives of research organizations; visitors from other universities; individuals interested in University programs and development of new programs (both paid and non-paid consultants); and business and community leaders in Tuscaloosa, other Alabama communities, and the state at large who are at the campus on specific business on behalf of the University. The relationship between the visitor and the University staff or faculty attending the function or their areas of responsibility must be clearly indicated.

c) Official University functions and receptions held by the President for employees, students, alumni, and friends of the University shall be reimbursed as entertainment.

d) Pre-game athletic functions for alumni, staff, students and guests shall be reimbursed as entertainment when the purpose of the function is to cultivate potential donors.

e) Entertainment of students is allowable.

2. Unallowable

a) Departmental social functions in celebration of an event or a holiday or to promote fellowship among constituents are not reimbursable. Examples include retirement, introduction of new staff, and Christmas parties.
b) Entertainment expenditures are prohibited for alcoholic beverages, bartenders, golf green fees, boat rentals, private club dues, or civic group functions. Flowers, fruit baskets, or other related items for individuals are also disallowed. This list is not exclusive but is meant to suggest the types of expenditures that may be prohibited.

c) No entertainment expenses will be charged to contracts or grants unless such entertainment is specifically authorized by the terms of the contract or grant. (Refer to Section III, Conferences and Meetings.)

d) Meals held prior or subsequent to a business function are not allowable uses of University funds.

C. Payment Processing

1. Reimbursement can be obtained by completing an MDV and forwarding it, with applicable original receipts and approvals, to Accounts Payable.
2. The expenditure code is 73XXXX.

D. Documentation

1. Entertainment expenditures must be documented to show the following:
a) Identification of the person or group to be entertained, including the relationship of the persons in attendance to the particular aspects of the University program that will be benefited. This information includes titles, committee names, the field of interest of the person or group being entertained, the reason for inviting the visitor(s) to campus, and other relevant details. If a small group is being entertained (10 or fewer), the names of all persons attending must be shown; for larger groups, only the name or names of the honored guest or guests must be indicated, with the number of persons attending.
b) A statement as to the reason or purpose of the entertainment, including the purpose and benefits of the program to the University. If the function that included the entertainment is held away from the University campus, an agenda for the function must be attached. If entertainment includes only UA employees, an explanation as to why it had to occur at breakfast, lunch, or dinner is necessary.

c) The date and place of entertainment.

2. For all meals, an original receipt is required. The term original receipt does not include a tab torn from the bottom of a restaurant ticket on which one can write an amount.

3. Reimbursement for meals in excess of $25 per person requires a restaurant receipt that itemizes the food and beverages. Credit card slips are not acceptable documentation for meals in excess of $25 per person.

4. Should the documentation be incomplete, Accounts Payable will forward it to the division or department head with an explanation of why payment cannot be made. Failure to adequately document the request for reimbursement may require the individual staff or faculty member to bear the cost of the entertainment.

5. Any expense that cannot be documented with an original third-party receipt/invoice will not be reimbursed.

E. Entertainment in the Home

1. Entertainment in the home shall only be reimbursed as business entertainment if the conditions provided above are met.
2. Payments for services (for example: food servers, musical entertainment, clean-up crew) must be made through University procedures outlined in Section VII, Professional Services. The payment should be made directly by the University, rather than paid by an individual and submitted as an out-of-pocket expense reimbursement.

To prevent potential reimbursement problems, the department should consult with the Accounts Payable Supervisor before making an expenditure not addressed in these guidelines to determine if the expenditure is within the University's fiscal policies.

III. CONFERENCES AND MEETINGS

A. General Guidelines

1. This category includes the costs of conferences, workshops, meetings and seminars conducted by the University when the primary purpose is the dissemination of technical information. This includes costs of meals and other necessary expenses.
2. The appropriate codes is 73XXXX.

B. Expenditures Supported by Income

1. In the case of conferences, workshops, meetings, and seminars conducted by the University and supported by income from registration fees, allowable entertainment expenses will be reimbursed.
2. The statement "Covered by Income" should be typed in the description on the MDV.

C. Expenditures Not Supported by Income

1. Conferences, workshops, meetings, seminars, retreats, etc., that are not supported by fees may be organized around University groups in combination with outside persons or groups limited to University personnel.
2. Meal or refreshment expenses associated with these groups will require assurance, through appropriate documentation, that the function is essential to the operation of the University and that provision of meals/refreshments is incidental to the function rather than the primary purpose of the function.

IV. OUT-OF-POCKET REIMBURSEMENT

A. General Guidelines

All expenses should be paid by the University directly to the vendor. However, the University recognizes that extenuating circumstances may occur that would cause an individual to pay out-of-pocket expenses that must be reimbursed.

B. Payment Processing

1. To request reimbursement for an out-of-pocket expense, the individual should submit proper documentation within 60 days of the expenditure. Requests for reimbursement after 60 days are taxable. Withholding will made from a subsequent salary check. (Refer to Section I.B.1 of these Policies.)
2. A request for reimbursement must be signed by someone other than the person being reimbursed. The approval must be made by a supervisor or someone designated by the supervisor.

3. Purchases from the University Supply Store or other University departments should be made using a departmental transfer authorization form (DTA) and not reimbursed to an individual.

V. PAYMENTS IN FOREIGN CURRENCY

A. Payment Processing

Should a vendor require payment in a foreign currency, the department must provide the information necessary to make payment by completing the appropriate paperwork.
1. On the MDV under "Purpose or Description of Service," include the amount and name of the foreign currency.

2. The MDV should be processed through the normal approval channels.

3. Allow at least seven to ten business days for Financial Accounting to order and receive the draft in foreign currency. Financial Accounting then sends the draft and any necessary attachments to the vendor.

B. Notification of Amount

1. For notification of the amount in U.S. dollars to be charged to your account, please include a contact name and phone number on the MDV.
2. When the charge is recorded to your account, it will be in the name of the bank or foreign exchange from which the draft was obtained.

VI. PAYMENTS TO FOREIGN VISITORS

AND NON-U.S. CITIZENS

Both the federal immigration laws and tax laws place a number of restrictions on payments made to foreign visitors. Violation of these laws can result in serious consequences for both the foreign visitor and the University.

A. Visa Status

1. When making arrangements to host a foreign visitor, the department must confirm that the visitor has an appropriate visa status. The University cannot make any payments to a foreign visitor who is not properly authorized under federal immigration laws.
2. Current law allows "B" visa holders to receive honoraria and/or expense reimbursements if they are providing academic services for less than 9 days and have not received such payments from more than 5 institutions in the previous 6-month period.

3. If the department wishes to pay an honorarium to a visitor who does not meet the criteria in Item B.2, an appropriate visa must be obtained (usually "J-1"). Contact Capstone International Programs and Services (CIPS) for assistance.

B. Tax Withholding or Exemption

1. In general, all monies paid by the University to a foreign visitor (other than expense reimbursements documented by original receipts) are taxable, unless exempt under the provisions of a tax treaty with the visitor's country of residence or under a provision of the Internal Revenue Code. The University is required by law to withhold federal income tax from payments that are not exempt.
2. Before hosting a foreign visitor, the department should contact the Nonresident Alien (NRA) Tax Accountant so that a complete tax analysis can be performed. This is necessary to determine the visitor's tax status and to ensure that any applicable tax exemptions are granted.

C. Tax Identification Numbers

1. Either a social security number (SS#) or an individual taxpayer identification number (ITIN) is required when making any payment to a foreign visitor (other than expense reimbursements documented by original receipts).
2. Contact the NRA Tax Accountant for assistance in obtaining ITINs for short-term "B" visa holders.

3. Other visa holders such as "J-1" who qualify to receive a SS# will need to apply for a SS# if they do not already have one.

D. Payment Processing

1. If the payment is for expense reimbursement only, this should be stated on the MDV and original receipts attached.
2. For payments other than expense reimbursements, a copy of the visitor's visa and passport is required. Also, the visitor may need to sign tax treaty exemption forms, which will be provided by the NRA Tax Accountant if applicable.

3. For honoraria or professional service fees, in addition to the above restrictions, payments to foreign visitors are subject to the general guidelines outlined in Section VII of these Policies.

Contact the NRA Tax Accountant at 348-8865 in advance for assistance with payment processing.

VII. PROFESSIONAL SERVICES AND HONORARIA

A. Professional Service Fees

NOTE: Professional fees to University faculty and staff will be paid through the monthly budgeted payroll system as supplemental compensation. See Payroll's procedures for detailed instructions.

1. Independent Contractor Approval
a) Only independent contractors, as defined by IRS regulations and approved by the Tax Manager, may be paid under a professional service contract.
b) In accordance with the University's nepotism policy, individuals who are related by blood, marriage, or reside in the same household will not be permitted to work for the University if one relative's work responsibilities, rate of pay or other terms and conditions of employment could be influenced by the other relative. Independent contractor approval will not be granted if the nepotism policy would be violated by the contractual relationship. For further details and definitions, refer to the Human Resources Nepotism Policy.

c) A Request for Independent Contractor Status form (available at financialaccounting.ua.edu/forms) must be completed and submitted to Financial Accounting prior to making an agreement to pay someone as an independent contractor. The Tax Manager will review the information on the form, rule on the independent contractor status, and return the form to the department marked "approved" or "not approved".

d) If not approved, the department should contact the Compensation office in Human Resources to take steps to hire the individual as an employee of the University.

e) If approved, a copy of the Independent Contractor form should be submitted with the MDV for payment.

2. Professional Service Agreements

a) A contract must be executed prior to an individual or company performing professional services for the University.
b) The contract must include the individual's/company's name, Social Security/Federal I. D. number, home or business mailing address, the fee, dates of service, and the nature and purpose of the service.

c) To the extent that the independent contractor wishes to be compensated for associated business expenses such as travel, those costs may be paid directly to the independent contractor or to a third party vendor such as a hotel or travel agency. A professional service agreement between the department and the independent contractor should state clearly whether the fee includes all expenses or expenses will be paid separately.

d) The Professional Service Agreement format is available on the web at financialaccounting.ua.edu/forms. Select the paragraphs that detail the agreement desired between the department and the independent contractor.

(1) Form PSA-1: Option 1 should be used when paying a fee only, or for a total amount to cover fee and expenses. No further payments can be made to, or on behalf of, the individual. The individual is responsible for paying his or her own expenses and should retain original expense receipts for tax purposes, although you may obtain copies for departmental records if you wish. Do not send receipts to Accounts Payable when using this option.
(2) Form PSA-2: Option 2 should be used when you are paying a fee and reimbursing actual expenses. Using this option, you must either collect original receipts from the individual or pay expenses directly to a third-party vendor, such as airline ticket and hotel bill.

e) Reimbursement of travel expenses is made according to the contract signed by the parties, but may not exceed the limits stated in the out-of-state travel policies.

f) Professional service agreements containing provisions contrary to policies and procedures are invalid and will not be honored.

3. Payment Processing

a) MDVs in payment of professional services must include the individual's/company's name, Social Security/Federal I. D. number, and home or business mailing address so that IRS Form 1099 can be prepared and mailed to the individual/company at the end of the calendar year.
b) Other documentation should include:

(1) signed Professional Service Agreement and/or invoice*
(2) approved Request for Independent Contractor Status form

(3) receipts (only if paying expenses separately using PSA Option 2 described above).

*When funds from a state of Alabama grant or contract or federal agency passed to the University through a state agency are used to pay for professional services, an invoice from the professional is required as documentation, in addition to the other requirements of this section.

c) Payment of professional service fees cannot be made in advance. Although completed paperwork may be submitted to Accounts Payable in advance, the check will not be issued until the completion date of the service.

d) The appropriate expenditure account code is 74XXXX.

B. Honoraria

1. Honoraria, given in payment for services when propriety forbids establishing a price, will be limited to distinguished guest speakers and other official guests of The University of Alabama. No contract is made.
2. The appropriate expenditure account code is 74XXXX.

3. MDVs in payment of an honorarium should be submitted to Accounts Payable and must include the guest's name, Social Security number, home or business mailing address, and the amount of the honorarium so that IRS Form 1099 can be prepared and mailed at the end of the calendar year.

4. In lieu of a cash honorarium, goods imprinted with words or symbols publicizing the University may be given. Items given in addition to a cash honorarium can only be of such value as will prevent the cash plus the item from exceeding a reasonable honorarium. Only cash honoraria are taxable.

5. Honoraria cannot be used to pay for professional services.

Consult the Tax Manager or Accounts Payable Manager with any questions.

VIII. RELOCATION EXPENSES

A. General Guidelines

1. Payment of the relocation/moving expenses of new faculty and administrators is at the option of the appropriate dean, director, or department head.
2. When a University department agrees to pay the moving expenses for a new employee, the department should call Purchasing to obtain the name of the moving company under contract. Interstate moves require the use of the moving company with which the University has a contract.

3. Any other moving expense reimbursements should be submitted on MDV with original receipts attached.

B. Classification of Payments

Refer to the chart below for account codes when categorizing payments made for new-employee moving expenses.

Account code /Category of Expense

781411 - Household moving (including up to 30 consecutive days of storage)

781412 - Travel and lodging during the move (including mileage up to 13 cents per mile)

781413 - Meals during the move

781418 - Pre-moving travel and lodging (ex: house-hunting trip after candidate has accepted job offer)

781419 - Pre-moving meals

781416 - Temporary quarters (after moving to the Tuscaloosa area)

781417 - Temporary quarters meals

781414 - Miscellaneous (including mileage in excess of 13 cents per mile and storage in excess of 30 days)

781415 - Office/Laboratory

C. Tax Treatment

1. Reimbursements for moving expenses are classified as "qualified" and "non-qualified" according to federal tax law.
2. "Qualified" moving expense reimbursements include household moving (including up to 30 days of storage) and travel and lodging during the move. If travel includes mileage, the qualified mileage rate is currently $0.20 cents per mile. Such items paid directly to the employee are treated as nontaxable fringe benefits, which are reported as an information item in Box 13 of the employee's W-2 Form at the end of the year. If such payments are made to a third party, such as a moving company, the payments are not required to be reported.

3. All other moving expense reimbursements are classified as "non-qualified" and are considered taxable income to the employee. This includes storage costs in excess of 30 days and mileage reimbursed in excess of $0.20 cents per mile. All non-qualified payments will be included in the "Wages" amount reported in Box 1 of the employee's W-2 Form at the end of the year and are subject to tax withholding on a quarterly basis. For example, tax on any non-qualified payments made during April, May or June would be withheld from the employee's paycheck paid nearest to July 31st. Non-qualified payments made to third parties, such as a hotel, will be classified and treated as if the payment had been made directly to the employee.

IX. AWARDS, SCHOLARSHIPS,

FELLOWSHIPS, AND STIPENDS

A. Prizes and Awards

1. Monetary
Prizes and awards for scientific, educational, artistic, or literary achievements are taxable income to the recipient. The appropriate expenditure account code is 78XXXX.

University employee awards must be processed on a personnel action form (PA) through the University payroll system. This includes student-employee awards such as awards for outstanding teaching or research.

Student prizes and awards that are not related to employment can be processed on an MDV. The appropriate expenditure account code is 78XXXX.

2. Non-monetary

For non-cash awards such as plaques, trophies, certificates, etc., the appropriate expenditure account code is 78XXXX.

B. Scholarships and Fellowships

1. A scholarship is an amount paid or allowed to a student to aid in pursuit of studies. A fellowship is an amount paid or allowed to an individual to aid in the pursuit of study or research.
2. The appropriate expenditure account code for scholarship/fellowship payments is 78XXXX.

3. If the recipient must perform teaching, research, or other services for the University in order to receive payment, the payment is considered wages and should be processed through the payroll system.

4. Any amount received as a qualified scholarship by an individual who is a candidate for a degree is excluded from that individual's taxable income. Qualified amounts are those used for tuition and related expenses such as fees, books, supplies, and equipment that are required for the courses of instruction. Amounts received that are not qualified are included in the recipient's gross income for taxable purposes. It is the recipient's responsibility to determine the taxable portion of scholarship/fellowship grants received.

5. Scholarships should be awarded through Student Financial Aid, which will apply the awards to the students' accounts.

6. Fellowships may be paid on an MDV through Accounts Payable, or on a PA through Payroll, or applied to a student's account through the Graduate School or Student Receivables. For non-University students, payment should be on an MDV or a PA.

C. Stipends

1. Stipends are allowances paid for travel or living expenses to participate in a University-sponsored program or conference. Some examples include summer programs for high school students or in-service workshops for teachers.
2. The appropriate expenditure account code is 78XXXX.

3. When submitting MDVs for stipend payments, detailed information must be provided to indicate the nature of the stipend. For example:

a) Is the stipend intended to cover expenses such as travel, room and board?
b) Is the recipient a student or a participant in a training workshop or seminar?

c) Is the recipient performing any services for the University?

4. If services are being performed, the payment should be reclassified as wages or professional service fees. The Tax Manager should be consulted in advance to determine the proper classification.

Example: Travel allowances paid to participants in a UA-hosted workshop would be classified as stipends (78XXXX). Payments to individuals for teaching or leading the workshop would be classified as professional fees (74XXXX).

X. STUDENT/FOUNDATION ADVANCES

A. General Guidelines

1. Advances for travel that are made from University funds are made for University students only.
2. Those departments funded by the Alumni Fund, Law School Foundation, or Capstone Foundation may request advances for entertainment from those organizations.

B. Requests for Advances

1. The request for an advance is made on a Miscellaneous Disbursement Voucher (MDV), which must include the following:
a) custodian's name
b) custodian's address

c) custodian's telephone number (and contact number if different from custodian)

d) description and location of trip or event

e) dates of departure and return or date of event

f) amount of advance

2. The custodian should be the student who is traveling; if a group of students is traveling together, a custodian may be designated. When a University employee is traveling with students, the employee should be the custodian.

3. To ensure that the check will be available, the MDV for the advance should be prepared and submitted to Financial Accounting 10 days prior to the date funds are needed. The designated person will be called when the check is ready. He or she will be required to sign the advance check instruction sheet at the time the check is picked up. ONLY THE CUSTODIAN WILL BE ABLE TO SIGN FOR THE CHECK.

C. Return of Receipts and/or Unspent Funds

1. The custodian will be required to submit a subsequent itemized list of expenses with original receipts for all expenditures to Financial Accounting no later than 10 days after the completion of the event, along with the advance check instruction sheet given to him or her when he or she signed for the check.
2. If there is any money left over, a Daily Cash Transmittal should be prepared and taken to Student Receivables, Departmental Receipt Window.

3. No new advances will be issued until receipts and/or any unspent funds are returned from prior advances.

4. Advances not settled by employees within 30 days of the due date on the advance check instruction sheet will be charged against the custodian's salary.

5. In the case of student advances, the amount of the advance will be charged to the student's account if not settled with Financial Accounting by the due date on the advance check instruction sheet.

6. If any expenses in excess of the advance are to be reimbursed, complete the appropriate travel voucher and reference the advance check number on the travel voucher and return with the advance. All receipts should be attached to the advance check instruction sheet.

XI. PETTY CASH

A. General Guidelines

Petty cash funds are generally set up for the purchase of low-cost items needed immediately, or for change funds.

B. Requests for Petty Cash

1. To open a petty cash fund, a written request and a Miscellaneous Disbursement Voucher (MDV), payable to the custodian, should be sent to Financial Accounting. The request will be presented to the Director of Accounting and Reporting for approval.
2. The custodian will be called when the check is ready. Written procedures for handling the fund will be given with the check .

C. Closing or Replenishing Petty Cash

1. When closing or replenishing the petty cash fund, original receipts and an MDV should be submitted to Financial Accounting.
2. If any funds remain when closing the account, a Daily Cash Transmittal and the funds should be turned in to Student Receivables, Departmental Receipt Window.

XII. OTHER

NOTE: When preparing a miscellaneous disbursement voucher (MDV) for a subscription, registration, or other payment that requires a form (the only documentation) to be sent with the check, include a photocopy of the form with the voucher. This copy can then be used by the auditors and state examiners later to verify the payment.

A. Registration Fees

1. All registration fees should be prepaid by the University if possible. If not prepaid by the University, registration fees may be reimbursed after completion of the event.
2. The appropriate expenditure account code is 78XXXX.

B. Memberships/Dues

1. The University encourages faculty and staff membership in organizations that will promote advancement of instruction, research, and public service and enhance the professional standing and development of its faculty and staff. With the approval of the dean or corresponding non-academic area head, faculty and staff memberships that are within the guidelines outlined below may be paid for with available departmental funds.
2. Faculty and staff memberships paid for with departmental funds should return demonstrable benefits to the division/department in terms of its mission. These benefits should include:

a) receipt of scholarly journals, professional publications, and employment information
b) professional development

c) contact and exchange of information with other professionals in the area of interest

d) instructional enhancement

e) scholarly research and creative work

3. Only memberships in organizations that do not discriminate on the basis of race, religion, sex, age, color, national origin, or individual handicap will be approved.

4. Costs of membership in any civic or community organizations are unallowable.

5. An attorney general's ruling allows only one membership per city for chambers of commerce. These memberships must be in the name of the University with no benefits accruing to any particular individual or department.

6. Colleges and corresponding non-academic areas may establish more restrictive guidelines for the payment of individual memberships within the guidelines presented above.

7. Payment of dues should be processed on an MDV approved by the dean or the corresponding non-academic area head.

8. The appropriate expenditure account code is 78XXXX.

C. Subscriptions

1. Payments for subscriptions should include the renewal notice or a completed order form. If these are not available, the department should type a letter to the vendor indicating the periodical desired and the UA address to which it should be mailed. A photocopy of the letter, as well as the original letter, should be attached to the MDV.
2. The appropriate expenditure account code is 78XXXX.

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