As a public institution, the University must take measures to assure the general public, donors, legislators, students and granting organizations that all funds received by the University are wisely spent and do not personally benefit University employees¹. All expenditures must be essential, reasonable and support the University's Mission, Goals and Strategies. For these reasons, the University has established the following guidelines and policies.

This Directive incorporates Executive Order No. 761 issued on October 31, 2000 and supersedes the University's Community Relations Food and Promotional Items policy issued on February 29, 2000.

1. Purpose

This Directive addresses expenditures related to hospitality expenses; event attendance; get well gestures; memorial donations; recognition awards; memberships in educational, business, professional or civic/service organizations; fines and penalties; late fees; personal gifts and meals; use of University-issued credit cards; maintenance of private vehicles used for University business; and employee education benefits.

2. Scope

These administrative guidelines and policies apply to all University administrators, faculty, staff, organizations, including student organizations, and auxiliaries, and may be modified as necessary by the University President. Unless stated otherwise, the University President has delegated expenditure approval authority to Division Heads, who may, unless stated otherwise, delegate this authority to others.

3. Guidelines

All expenditures made by the University must:

• Be compatible with and enhance the Mission, Goals and Strategies of the University
  
  
• Honor any restrictions imposed by the funding source(s).
  
  
• Be reasonable in amount, prudent for an institution supported by public funds and accountable to the public for how it spends those funds.

4. Definitions

"Auxiliary Organization Funds" represent funds appropriately deposited in a recognized University auxiliary, including but not limited to Associated Students, University Advancement Foundation and the Cal State Fullerton Foundation.

"Awards" are items given in recognition of service or achievements directly benefiting the University.

"Division Heads" are, for the purposes of this Directive, the following administrators: the President; Executive Vice President; Vice Presidents for Academic Affairs, Student Affairs, University Advancement and Administration; Chief Information Technology Officer and Chief Financial Officer.

"General Fund Appropriations" represent funds provided by the State legislature.

"Gifts" are items presented with the expectation of a benefit accruing to the University.

"Hospitality expenses" include but are not limited to meals (catered or restaurant) and light refreshments (for example, beverages, hors d'oeuvres, pastries or cookies). The provision of hospitality may not be solely a matter of personal convenience.

"Official University Guests" are individuals invited to attend a University sponsored meeting, conference or event who are not employed by the University. Examples of official University guests include but are not limited to employees from another CSU campus or the Chancellor's Office, members of the community, University volunteers, prospective and currently enrolled students, parents and family members of prospective or currently enrolled students, and media representatives. Student employees and individuals including but not limited to consultants, facilitators and vendors generally may not be considered an "Official University Guest."²

"Promotional Materials" are items of minor value that bear the University logo or other University symbol distributed to promote the name or image of the University, provide information, or enhance University productivity.

"Retirement" is interpreted broadly to include those faculty and staff who, although not "retiring," have left the University's employ.

"Special Funds" are generated by fees and revenues other than General Fund Appropriations and may be used to support activities supplemental to the University's primary mission. Special funds may be used to pay hospitality or other expenses only to the extent permitted by the statute under which the funds are established and maintained, and only if such expenses are specifically authorized by the trust agreement or special project agreement.

"University" includes all recognized auxiliaries of the University.

"University sponsored" means that a Division Head or a Division Head's designee has recognized the event as a University sponsored event.

5. Categories of Expenses

A. Hospitality Expenses. University officials may use or approve the use of University funds to pay for hospitality expenses directly related to or associated with the active conduct of official University business. Expenditures must clearly be consistent with the mission and fiduciary responsibilities of the University.

The expected cost of a hospitality expense must be weighed against the importance of the event, the benefits to be derived from such an expense, the availability of funds, and any alternatives that would be equally effective in accomplishing the desired objectives.

Due to the varied nature and objectives of University activities, there is no single rule to apply with respect to cost parameters for hospitality expenses. At times, utilizing an expensive venue may be necessary to accomplish an official University purpose, for example, solicitation of a large donation. At other events, for example, a University recognition event, food costs should not exceed per diem rates set by the California State University Board of Trustees.

The following sources of funds may be used to pay for the following activities, whether held on or off campus:

The following documentation is required for these expenditures:

• Reference to the applicable expense subsection on the purchase requisition or Procurement Card statement (for example, "Dir. 11, Section 5.A.1").
  
  
• Original, itemized receipt (submitted with Procurement Card statement if a Procurement Card was used). If an original and/or itemized receipt (which includes a description of each item purchased) is unavailable due to loss or other circumstances, a document either signed by the cardholder or sent from the cardholder's electronic mail account describing the circumstances and items purchased must also be submitted.
  
  
• List of names, titles and affiliations of event or meal participants (for example, "Milton Gordon, President, CSUF," or "100 community members and students").
  
  
• Written confirmation by Division Head that event or meal participants were official University guests (only required if official University guests are present).
  
  
• Written confirmation that a Division Head or a Division Head's designee has recognized the event as a University sponsored event (if applicable).
  
  
• Written approval by a Division Head or a Division Head's designee.
  
  
• If a Division Head's designee approved the expense, written confirmation to the Chief Financial Officer of Division Head's delegation of authority (a Division Head may delegate approval authority either on a case-by-case basis or more broadly by category of expense).

B. Event Attendance. Payment for a University administrator, faculty member, staff member or student to attend a special event of the University (for example, Front & Center) or a community event is permissible as long as attendance at the event is necessary for the success of the event or directly relates to the individual's responsibilities and role at the University. The University will pay for spouses/partners of University employees to attend when it can be shown that spouses/partners are expected to attend. Permissible expenses may include, for example, the rental of formal wear, if required, or the rental of caps and gowns for faculty and staff members at Commencement.

The following sources of funds may be used to pay for event attendance expenses:

The following documentation is required for these expenditures:

• Reference to the applicable expense subsection on the purchase requisition or Procurement Card statement (for example, "Dir. 11, Section 5.B.1").
  
  
• Original, itemized receipt (submitted with Procurement Card statement if a Procurement Card was used). If an original and/or itemized receipt (which includes a description of each item purchased) is unavailable due to loss or other circumstances, a document either signed by the cardholder or sent from the cardholder's electronic mail account describing the circumstances and items purchased must also be submitted.
  
  
• Written approval by Division Head and confirmation that event attendance is "necessary for the success of the event or directly related to the individual's responsibilities and role at the University."
  
  
• Written confirmation by Division Head that any ancillary event expenses (spouse/partner attendance and/or other expenses such as rental of academic regalia) are appropriate.

C. Miscellaneous Division or Unit Expenses. The following sources of funds may be used to pay for the following expenses:

The following documentation is required for these expenditures:

• Reference to the applicable expense subsection on the purchase requisition or Procurement Card statement (for example, "Dir. 11, Section 5.C.1").
  
  
• Original, itemized receipt (submitted with Procurement Card statement if a Procurement Card was used). If an original and/or itemized receipt (which includes a description of each item purchased) is unavailable due to loss or other circumstances, a document either signed by the cardholder or sent from the cardholder's electronic mail account describing the circumstances and items purchased must also be submitted.
  
  
• Written approval by Division Head and confirmation that expenses were necessary and/or related to a unit's purpose or mission and are available for use by all members of the unit.

D. "Get Well" Gestures. Floral or other arrangements may be provided only under the following circumstances. Such arrangements must be appropriate for the circumstance and generally may not exceed $75. A Division Head must approve arrangements more than $75.

• Seriously ill or injured employees and students at the discretion of the appropriate Division Head or their designee(s); and
  
  
• Seriously ill or injured individuals external to the University who have or have had a close educational, community, business or philanthropic relationship with the University.

Generally only one arrangement may be sent on behalf of a Division. A Division Head or their designee(s) will coordinate such acknowledgements within their Division or Unit. Arrangements must be sent in the name of the appropriate unit.

The following sources of funds may be used to pay for "get well" gestures:

The following documentation is required for these expenditures:

• Reference to the applicable expense subsection on the purchase requisition or Procurement Card statement (for example, "Dir. 11, Section 5.D.1").
  
  
• Original, itemized receipt (submitted with Procurement Card statement if a Procurement Card was used). If an original and/or itemized receipt (which includes a description of each item purchased) is unavailable due to loss or other circumstances, a document either signed by the cardholder or sent from the cardholder's electronic mail account describing the circumstances and items purchased must also be submitted.
  
  
• Name of recipient and affiliation with the University.
  
  
• If more than one arrangement is sent on behalf of a Division and/or an arrangement is more than $75, written approval by Division Head.
  
  
• Written approval by a Division Head or a Division Head's designee.
  
  
• If a Division Head's designee approved the expense, written confirmation to the Chief Financial Officer of Division Head's delegation of authority (delegation may be on file with the Chief Financial Officer).

E. Memorial Donations. In the event of the death of a University employee; a member of a University employee's immediate family; an individual external to the University who had a close educational, community, business or philanthropic relationship with the University; or a student (at the discretion of the appropriate Division Head or their designee[s]), a donation may be made on behalf of the University to the designated University memorial scholarship account. This is the preferred practice. However, a floral or other arrangement may be provided if approved by the pertinent Division Head. Donations generally may not exceed a cumulative total of $1,000 from all University funding sources and arrangements generally may not exceed $75. Division Heads or their designee(s) will coordinate the making of a donation within their Division. A Division Head must approve arrangements more than $75. Any card accompanying a donation or arrangement must note that the donation or arrangement is made or sent in the name of the appropriate unit.

The following sources of funds may be used to pay for memorial donations or arrangements:

The following documentation is required for these expenditures:

• Reference to the applicable expense subsection on account transfer documentation (for example, "Dir. 11, Section 5.E.1").
  
  
• Name of deceased and affiliation with the University.
  
  
• Written confirmation by Division Head or Division Head's designee that expected donations do not exceed a cumulative total of $1,000 from all University funding sources.
  
  
• Written approval by a Division Head or a Division Head's designee.
  
  
• If more than one arrangement is sent of behalf of a Division and/or an arrangement is more than $75, written approval by Division Head must be provided.
  
  
• If a Division Head's designee approved the expense, written confirmation to the Chief Financial Officer of Division Head's delegation of authority (delegation may be on file with the Chief Financial Officer).

F. Recognition

1. Donor/Volunteer. Any donor recognition item should not exceed $75 in value for any one item. A donor may receive more than one recognition item during the year, depending on the nature of the activities for that year in which the donor was involved.

2. Faculty/Staff/Student Recognition. The University acknowledges the noteworthy
work-related or academic accomplishments of its faculty and staff members through the following programs:

• Outstanding Faculty Member Awards (both for the University and in the individual Colleges)
  
  
• Outstanding Staff Member Award
  
  
• Titan Excellence Awards
  

A Division Head may acknowledge the noteworthy work-related or academic accomplishments of a faculty member, staff member or student outside of the above programs through the presentation of an item of tangible personal property generally not to exceed $75 in value.

3. Individuals External to the University. Floral arrangements or the equivalent may be given to recognize the professional achievement of an individual or an organization external to the University who has or has had a close educational, community, business or philanthropic relationship with the University. Such arrangements must be appropriate for the achievement and generally may not exceed $75 in value. Any card accompanying an item must note that the recognition is made in the name of the appropriate unit.

4. Faculty/Staff Length of Service. The University may present an item of tangible personal property valued at up to $400 to employees for length of service contributions to the University. The recognition items described in this section may generally only be awarded as part of the University's annual faculty and staff recognition events and should not be determined based on an employee's classification. Such awards are subject to the following limitations:

• The award must be given for length of service achievement;
  
  
• The recipient must have completed at least five years of service; and
  
  
• The recipient must not have received a length of service award in any of the prior four years.

5. Faculty/Staff Retirement. The University may present an item of tangible personal property to an employee upon his or her retirement. Generally the value of the item given should not exceed $400. However, when warranted by the length of service, position and achievements of the individual retiring, the value of the item may be greater. In no instance may the value of the item received exceed $2,000. The recognition items described in this section may generally only be awarded as part of the University's annual faculty and staff retirement events.

The following sources of funds may be used to pay for the following recognition expenses:

The following documentation is required for these expenditures:

• Reference to the applicable expense subsection on the purchase requisition or Procurement Card statement (for example, "Dir. 11, Section 5.F.1").
  
  
• Original, itemized receipt (submitted with Procurement Card statement if a Procurement Card was used). If an original and/or itemized receipt (which includes a description of each item purchased) is unavailable due to loss or other circumstances, a document either signed by the cardholder or sent from the cardholder's electronic mail account describing the circumstances and items purchased must also be submitted.
  
  
• Name of recipient(s) and affiliation with the University.
  
  
• Written confirmation by Division Head of length of service, position and/or achievements justifying the presentation of a retirement item valued at more than $400 (if applicable). In no instance may the value of the item received exceed $2,000.
  
  
• Written confirmation by Division Head of expenses related to the presentation of an item recognizing the noteworthy work-related or academic accomplishments of a faculty member, staff member or student outside of the programs listed in Section 5.F.2 (if applicable). Such item may generally not exceed $75 in value.
  
  
• Written approval by a Division Head or a Division Head's designee.
  
  
• If a Division Head's designee approved the expense, written confirmation to the Chief Financial Officer of Division Head's delegation of authority (delegation may be on file with the Chief Financial Officer).

G. Memberships in Educational, Business, Professional or Civic/Service Organizations. Memberships in educational, business or civic/service organizations must be held for the benefit of the University. Payments for such memberships are permitted only when the University employee serves as an official representative of the University. Such memberships may not be with any organization that maintains unlawful discriminatory membership policies or practices. Memberships and dues to professional organizations or licensing bodies are allowable expenditures only when they benefit the University. Such memberships may not be with any organization that maintains unlawful discriminatory membership policies or practices.

The administrator approving the membership request has the responsibility of ensuring that an institutional membership in the name of the University does not already exist. Business and Financial Affairs maintains a list of all institutional memberships held in the name of the University.

The following sources of funds may be used to pay for the following expenses:

The following documentation is required for these expenditures:

• Reference to the applicable expense subsection on the purchase requisition or Procurement Card statement (for example, "Dir. 11, Section 5.G.1").
  
  
• Original, itemized receipt (submitted with Procurement Card statement if a Procurement Card was used). If an original and/or itemized receipt (which includes a description of each item purchased) is unavailable due to loss or other circumstances, a document either signed by the cardholder or sent from the cardholder's electronic mail account describing the circumstances and items purchased must also be submitted.
  
  
• Written confirmation by Division Head that the organization does not "maintain unlawful discriminatory membership policies or practices."
  
  
• Written approval by a Division Head or a Division Head's designee.
  
  
• If a Division Head's designee approved the expense, written confirmation to the Chief Financial Officer of Division Head's delegation of authority (delegation may be on file with the Chief Financial Officer).

H. Fines and Penalties. The University does not pay, or provide reimbursement, from any funding source, for fines and other penalties incurred by a University employee in violation of public policy, including parking, traffic and library fines, or failing to enforce a public policy.

I. Late Fees. The University does not pay, or provide reimbursement, from any funding source, for service charges relating to late payments unless it can be demonstrated that the late fee was not the result of the cardholder's actions. Only auxiliary funds may be used to pay for this expense, which may only be approved by a Division Head.

J. Use of University-Issued Credit Cards for Personal Expenses. University-issued credit cards may not be used under any circumstance to pay for any personal expense or for any expense unrelated to the University's Mission, Goals and Strategies.

K. Maintenance of Private Vehicles Used for University Business. The University will not pay, or provide reimbursement, from any funding source, for expenses related to the maintenance and upkeep of privately-owned vehicles, such as fuel, tune-ups, lubricants, tires, licenses, car washes and other repairs, even though these vehicles may be used for University business. The employee may, however, be eligible for mileage allowance reimbursement under the University's travel policy. Tolls and reasonable parking charges may also be paid or reimbursed in addition to the mileage allowance.

L. Employee Education Benefits. Employee education benefits are limited to those permitted by the CSU Policy on Employee Fee Waivers or any similar policy adopted by the Associated Students or the Cal State Fullerton Foundation.

M. State Property. No faculty, staff member or student may give or receive State property as a gift or in lieu of compensation. Disposition and management of State Property are governed by both system and campus guidelines.

6. Expenditure Approval and Dispute Resolution

All delegations of approval authority must be made in writing to the Chief Financial Officer. Individuals with delegated approval authority may not approve their own expenses, and individuals may not approve the expenses of their supervisor. For those instances where the University refuses to process a payment believed to be in accord with this Directive, that decision may be appealed to the Chief Financial Officer or designee, who will make the final decision.

7. Funding Sources

There are three types of funds available for the payment of the expenditures described above: General Fund Appropriations, Special Funds, and Auxiliary Organization Funds.

A. General Fund Appropriations

The following restrictions apply to the use of General Fund Appropriations:

• General Fund Appropriations may not be used to pay for alcoholic beverages, tobacco products, gifts or awards.
  
  
• General Fund Appropriations may not be used to pay for food and beverages for business meetings attended only by employees of the University or its auxiliaries.
  
  
• Any expenditure prohibited by statute including the California Budget Act.

B. Special Funds

The following restrictions apply to the use of Special Funds:

• Special Funds may be used to pay for alcoholic beverages, tobacco products, gifts or awards to the extent other applicable laws, regulations or agreements do not restrict these purchases.
  
  
• Special Funds may be used to pay for food and beverages for business meetings attended only by employees of the University or its auxiliaries.
  
  
• Trust Funds and Special Project Funds may be used only to the extent the statute or agreement establishing the funds permits.
  
  
• Federal or local government contract and grant funds may be used only if the contract, grant or agency policy authorizes such expenses. If an agency policy and a university policy conflict, the more restrictive policy applies.
  
  
• No alcoholic beverages or tobacco products may be charged to Federal funds.

C. Auxiliary Organization Funds

The following restrictions apply to the use of Auxiliary Organization Funds:

• Auxiliary Organization Funds may be used only within the restrictions established by the auxiliary organization.
  
  
• Expenses for alcoholic beverages, tobacco products, gifts, and awards may be charged to Auxiliary Organization Funds subject to the policies and restrictions established by this directive and the auxiliary organization.

8. Payment Methods for Expenses

The CSUF Procurement Card is the preferred method of payment for official University business-related expenses. On-campus Food Services accepts the Procurement Card. For vendors who do not accept credit cards, a Purchase Order will be processed upon submittal of a requisition and appropriate expense documentation to Contracts and Procurement. Payment of expenses by individual employees using their personal funds (for later reimbursement) is strongly discouraged, and requires the approval of a Division Head or a Division Head's designee.
Any event for which expenses are anticipated to equal or exceed $10,000 from a single vendor must be processed through Contracts and Procurement a minimum of 8 weeks in advance of the event and in advance of any contract or commitment between the University and the vendor.

9. Responsibilities

A. Approving Officials. The approving official is responsible for assuring that the transaction is appropriate per the terms of Directive 11 and other applicable University policy, including: type of expense, fund source, approvals and delegations and complete supporting documentation. The applicable Division Head is ultimately responsible for all purchases charged to University fund accounts assigned to the Division.

B. Accounts Payable (Business and Financial Affairs). Accounts Payable is responsible for payment of all approved expenses in accordance with appropriate internal review procedures.

C. Contracts and Procurement (Business and Financial Affairs). Contracts and Procurement will create purchase orders for vendors who do not accept credit cards upon submittal of an appropriate requisition and expense documentation.

10. Questions

General questions regarding expenditures of university resources, including what type of university funds may or may not be used to fund specific purchases, may be sent to directive11@fullerton.edu. Questions regarding specific division policies and procedures should be directed to the appropriate Division Head's office.

_______________________________

¹ The fact that a faculty or staff member may receive an indirect personal benefit from an expenditure that directly and primarily advances the University's Mission, Goals and Strategies does not make that expenditure impermissible or inappropriate. For example, a meal received at a community event does not represent an impermissible or inappropriate expense as long as the primary purpose for attending the event was to achieve one of the University's Mission, Goals or Strategies.

² The President has delegated to Division Heads the ability to determine, as defined in this Directive, whether an individual is an official University guest. Division Heads may not delegate this responsibility.

³ Subject to CSU BOT travel policies. The appropriate Division Head must approve any employee or student off-site meetings involving overnight lodging.

⁴ Such items are a personal expense to be paid for by the individual(s) purchasing the gift or providing the meal/refreshment for the employee(s) or student(s).