Payment or Expense Reimbursement for University Employees by Affiliated Organizations
Subject: Financial Affairs
Policy: Payment or Expense Reimbursement for University Employees by Affiliated Organizations
Responsible Party: Vice President for Finance and Administration
100.00 Introduction and Purpose:
This policy implements Policy [ITEM 124-110-R0904] of the Montana Board of Regents of Higher Education 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 organizations funds and to establish the approval process for requesting direct payment or reimbursement from the affiliated organization.
For the purpose of this policy, the following definitions apply:
"Affiliated Organization" means any organization which has been determined to be a component unit under the criteria established by GASB 39. Affiliated organizations include the Montana State University Foundation, Montana State University-Athletic Scholarship Association, and the Museum of the Rockies, Inc.
Any affiliated organization must enter into an agreement with Montana State University regarding the terms and conditions of its affiliation with MSU. The agreement will address the following:
- The services and benefits MSU and the affiliated organization provide each other;
- How gifts, grants, and/or dues are accepted and accounted for by the affiliated organization;
- The organization's conflict-of-interest policy;
- The organization's spending policy for funds received by it on behalf of the University or its programs. The spending policy must address the organization's rules for payment to, or reimbursement of, University employees and departments;
- How campus input will be sought before defining the major needs and priorities for fund-raising;
- The organization's compliance with federal, state, and other laws and regulations applicable to such organizations;
- The organization's maintenance of financial and accounting records in accordance with generally accepted accounting principles or other comprehensive basis of accounting, as approved by an independent auditor or the University auditor;
- Requirement for audit of the financial records of the organizations;
- List of officers, directors, or trustees.
400.00 Acceptable Uses of Funds:
University departments and employees may seek reimbursement from any affiliated organization in accordance with the 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 other guests of the University and/or affiliated organization may be reimbursed if directly related to or ` associated with the active conduct of the affiliated organization or University business.
500.00 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.
510.00 Salaries/Wage Payments to Employees of University:
No direct payment of salaries or wages will be made to faculty, staff, students, and/or other full or part-time employees of the University. Any 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.
Loans to any employee or department will not be allowed.
530.00 Fines for Parking or Traffic Violations: Fines for parking or traffic violations or for any other illegal actions are not allowable.
Any employee or department that seeks payment or reimbursement from an affiliated organization may request payment on the forms developed by the affiliated organization. Any request for payment or reimbursement must be accompanied by appropriated documentation and approved in writing by the department head or director of the department. A director or department head may not approve his or her own requests for payment or reimbursement. Such requests will be approved by the department head's or director's immediate supervisor.
700.00 Internal Control Considerations:
Each department head or director will be responsible to review all requests for payment or reimbursement and related documentation to assure that it meets the require- ments of this policy before approval. Upon approval, documentation may be forwarded to the affiliated organization to be retained by it.