Payment To or Expense Reimbursement for University Departments and Employees by Affiliated Organizations


Subject:                          Financial Affairs
Policy:
                             Payment To or Expense Reimbursement for University Departments and Employees by Affiliated Organizations
Revised:                      
   March 2, 2016
Effective date:                March 2, 2016
Review date:                   March 2, 2019
Responsible Party:
        Vice President for Finance and Administration

100.00 Introduction and Purpose:

This policy implements Policy 901.14 of the Montana Board of Regents of Higher Education Policy and Procedures Manual and will govern the payment or expense reimbursement to or on behalf of MSU employees or departments by "affiliated foundations and organizations." The purpose of this policy is to establish consistent guidelines for the use of affiliated organization funds and to establish the approval process for requesting direct payment or reimbursement from the affiliated organization.


200.00 Definitions:

For the purpose of this policy, the following definitions apply:

"Affiliated Foundation” and “Affiliated Organization" means any organization which has been recognized by the University to provide assistance in fundraising, public outreach and other support for the University's mission. Affiliated organizations include the Montana State University Alumni Foundation, Inc. Montana State University-Bobcat Scholarship Fund, and the Museum of the Rockies, Inc. or any other organization approved under the university policy governing affiliated organizations.


300.00 Acceptable Uses of Funds:

University departments and employees may seek payment or reimbursement from, any affiliated organization in accordance with the affiliated organization's approved spending policy and this policy. In general, reasonable expenses for travel, meals, lodging, entertainment/hosting or other reasonable expenses directly related to entertaining donors, prospective donors, prospective employees, or others as approved by the department head or director of the department and dean may be reimbursed if directly related to or associated with the active conduct of the affiliated organization or University business.


400.00 Prohibited Use of Funds:

University departments and employees may not receive payments or seek reimbursement for the stated purposes listed in this section from any affiliated organization, except as noted.

A.  Salaries/Wage Payments to Employees of University:

No direct payment of salaries, wages or any other payment of monetary value will be made to faculty, staff, students, and/or other full or part-time employees of the University. Any use of the funds for salary support for an employee of the University may not be paid unless approved in advance by the appropriate Vice President and processed through the University payroll office.

B.  Loans:  Loans to any employee will not be allowed.

C.  Fines for Parking or Traffic Violations: Fines for parking or traffic violations or for any other illegal actions are not allowable.

D.  No duplicate payments:  No payment or reimbursement will be made for expenses that have been paid by the university and no payment or reimbursement may be sought from the University for Payments made by the Affiliated Organization.

E.  Personal Expenses:  No payment or reimbursement will be made for personal expenses that are not business expenses related to the performance of activities of the university or the Affiliated Organization.


500.00 Procedures:

Any employee or department that seeks payment or reimbursement from an affiliated organization may request payment, consistent with this policy, on the forms developed by the affiliated organization. Any request for payment or reimbursement must be accompanied by appropriate documentation and approved in writing by the department head or director of the department and dean. A director or department head or dean may not approve his or her own requests for payment or reimbursement. Such requests will be approved by the immediate supervisor. 


600.00 Internal Control Considerations:

Each department head or director and dean will be responsible to review all requests for payment or reimbursement, collect the appropriate documentation to support the purpose of the payment and will assure that it meets the requirements of this policy before approval. Upon approval, documentation will be retained by the university department and the affiliated organization.