Longwood
University
Chief University Advancement Officer:
Foundation
201 High Street, Lancaster 235,
Farmville, VA 23909
Phone: 434.395.2031
Fax: 434.395.2825
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Longwood
University |
Policy 9301
FOUNDATION
FUNDS DISBURSEMENT GUIDELINES
I. PURPOSE
The purpose of this policy is to establish guidelines for determining accountable uses for Foundation funds.
II. POLICY
A. General Expenditure Categories: Foundation guidelines for determining allowable uses of funds include general expenditure categories listed as follows:
1. Salary, Wage and Benefit Payments: Direct payment to faculty, staff, students, and/or other full- or part-time employees of Longwood is unallowable. If support of the Longwood payroll charges or other compensation to Longwood employees is approved from Foundation funds, payment to the employees will be processed through the Longwood Payroll Office and funds will be transferred from the Foundation to the University.
2. Honorarium and Consulting Fees: Payment of an honorarium or consulting fee is allowable provided the individual receiving payment is not an employee of Longwood.
3. Guest Expenses: Reimbursement of expenses incurred for entertainment of guest lecturers and/or other guests of Longwood is allowable. Usually reimbursement is limited to expenses incurred for travel, food and lodging of guests, and the associated expenses for a reasonable number of Longwood staff accompanying the guests. Unusual circumstances should be cleared with the Foundation Office before the expenditure is incurred.
4. Coffee Hours, Receptions, etc.: Reimbursement of expenses incurred for coffee hours, teas, and/or receptions may be reimbursed from Foundation funds provided the functions are in conjunction with Longwood related activities.
5. No Funds of the Longwood Foundation shall be expended in the following manner, with the exception of unrestricted monies designated specifically for the purpose of:
a. gifts, socials for events such as sickness, death, memorial, retirement, appreciation or other special occasions, farewell, get acquainted, annual picnics, lunches, or dinners (working meals are allowable if Longwood employees are conducting official Longwood business);
b. food and dietary supplies such as for routine use of water, coffee, cream, etc.;
c. spouse related travel and/or expenses unless spouse performing in an official capacity;
d. fines, parking tickets, penalties, cleaning, personal expenses associated with travel (such as movie rentals, health club fees, entertainment expenses, etc.).
6. No funds of the Longwood Foundation shall be expended to other 501(c)(3) organizations, excluding small gift memorial type expenditures and expenditures for bona fide educational purposes or professional development for students, faculty or staff. However, the Longwood President may, at her/his sole discretion, use discretionary funds and/or Small Business Development funds for the purchase of tickets when the President believes it is in the best interest of the University for a representative of the University to be present at a specific event. The following guidelines shall govern the purchase of such tickets.
a. No more than four (4) tickets can be purchased for a single event. Tickets may not be purchased when all or a portion of the proceeds from the ticket sale benefit a political organization, an elected official or candidate for public office and efforts attempting to influence legislation.
b. Tickets to events conducted as fund raisers for nonprofit organizations may be purchased to allow the presence of the appropriate Longwood official(s). (1997).
7. No Expenditures Shall be Made for: any type of political function, golf tournaments, dinners, roasts, political party caucuses, or any other function which suggests a political orientation (1995).
8. Association Dues and Publication Costs: Departmental and/or institution association dues and publications costs may be paid from Foundation funds. Payment of association dues and/or publication costs for the direct personal benefit of individual faculty or staff members is not allowed.
9. Faculty and Staff Travel:
a. Use of Foundation funds for travel expenses must follow the same procedures and advance approval process as required for travel expenses paid from state funds.
b. Only in extraordinary situations should travel expenses directly related to faculty and staff departmental, office, and/or institutional assignments be paid from Foundation funds.
c. In these situations, faculty and staff members must file an "Authorization for Travel," signed by the department head, dean, and/or vice president. The Foundation should be indicated as the source of funds for payment of the travel expenses by indicating the fund code number in the appropriate area of the form.
10. Magazine Subscriptions: Magazine and other subscriptions to be paid from Foundation funds should be directly related to departmental teaching, research, and/or public service activities. Subscriptions must be mailed to a Longwood department, office, or the Longwood library.
11. Supplies, Expenses, and Capital Equipment:
a. Supplies, expenses, and capital equipment generally used for teaching, research, and/or public service activities may be purchased from Foundation funds.
b. Title to capital equipment purchased from Foundation funds is automatically transferred to Longwood University unless specifically indicated otherwise by the Foundation.
c. Department head may recommend a specific vendor, manufacturer, etc., if specific supplies and/or equipment are required to maintain consistency with existing equipment or to meet teaching or research specifications.
d. All equipment purchases will be requisitioned in the name of the Longwood Foundation, Inc.
12. Sales Tax: Virginia State sales tax must be paid on all purchases made within the Commonwealth.
13. Other: Proposed uses of Foundation funds that are not directly related to the above categories or uses relating to unusual circumstances should be cleared by the Vice President for University Advancement and the Foundation Treasurer before incurring the expenses.
B. Control of Equipment: Listed below are Longwood guidelines for control of equipment purchases from Foundation funds.
1. Assignments of Equipment: Equipment purchases from Foundation funds will be assigned to the requesting department until such time as the equipment becomes excess to department needs, obsolete, or considered of limited value beyond reasonable report. In these cases, disposal of the equipment must be done in accordance with the State's surplus property guidelines.
2. Recording and Labeling of Equipment: Equipment purchased from Foundation funds will be recorded and labeled as a part of the Longwood inventory system, provided it has a two (2) year life expectancy and a value of five hundred (500) dollars or more. Exceptions to this are air conditioners, calculators, microscopes, typewriters, and printers.
3. Approval of Equipment: The institution and/or the Foundation may elect not to approve an equipment request for one or more of the following reasons:
a. high level of projected operating and/or maintenance costs;
b. space needs requiring major alterations to existing structure;
c. major installation costs; or
d. duplication of existing equipment which is available for general use by Longwood faculty and staff.
4. Contributed Equipment: Approval to accept contributed equipment must be obtained from the appropriate Longwood employee. In all cases, approval must be obtained before acceptance from corresponding department chair, dean, and vice presidents. In some instances approval from the Vice President of Business Affairs will also be necessary. Equipment contributed to the Foundation for Longwood use should be handled in the following way:
a. Any department head having knowledge of possible equipment contributions should check with the University Advancement Office for procedures to be followed.
b. Upon completion of a review by the Foundation and notification of the circumstances to Longwood officials, title to equipment accepted by contribution normally will be transferred to the University. Such equipment will be recorded as Longwood inventory.
C. Procedures for Withdrawal of Funds: Listed below are procedures for requesting withdrawal of Foundation funds.
1. Processing of Requests: Requests for withdrawal of funds will be processed as follows:
a. Requests will include disbursements for honorariums, consulting fees, association dues, publications costs, specifically approved faculty/staff travel (see General Expenditure category), subscriptions for magazines and publications, reimbursement expenses for entertainment of Longwood guests, reimbursement of a faculty member or payment to a vendor for miscellaneous supply items procured directly from a vendor, and other miscellaneous expenses.
b. Requests for withdrawal of Foundation funds are to be prepared by the department or administrative office requesting payment on a Trust Fund Withdrawal Request and submitted through the appropriate vice president to the Foundation Office for payment. Vendor invoices, expenses receipts, and/or other supporting documentation must be attached to the Withdrawal Request. Two (2) copies of supporting documentation are required.
c. Requests will be approved provided funds are available and the requests comply with guidelines established by the Foundation.d. Requests for reimbursement of travel expenses must be supported by one copy of the approved "Authorization for Travel" and by one copy of the required expense documentation.
e. Foundation checks will be distributed as indicated on the request.
f. Allow ten (10) business days (from the date of the Foundation's receipt) for processing and payment of all requests.
2. Requests to purchase equipment: Requests to purchase capital equipment and specific supply items (supplies to be ordered from vendors requiring a Longwood purchase order) will be processed as follows:
a. Capital equipment and specific supply items are to be requested by preparing a Longwood requisition and a Foundation Trust Fund Withdrawal Request. The title of the Foundation fund to be charged must be shown on the requisition. Justification for a specific vendor and/or manufacturer of equipment or supplies must accompany the requisition.
b. Requisitions for capital equipment are to be approved by the department head and appropriate vice president.
c. The requisition and the withdrawal request are to be submitted to the Foundation Office. Approval by the Vice President for University Advancement indicates that sufficient funds are available for the requested purchase. If funds are limited to a specific dollar maximum, the requisition will so indicate.
d. It is expected that the majority of Foundation requisitions will be in line with established Longwood purchasing policies and procedures. In a few instances, purchases will be for items generally not purchased with Longwood funds. In such instances, purchase requests will be processed the same as all other requests in order to purchase such items at the lowest price consistent with quantity and quality desired.
e. Payment to the vendor will be made by the Foundation Treasurer and the disbursement will be charged to the appropriate Foundation account.
f. One copy of each equipment order will be sent to Longwood Inventory Control following payment to the vendor in order to record and label the equipment as a part of the Longwood inventory system.
Revised and approved by the Board of Visitors, September 7, 2002.